GREENSBURG, Pa. - (Business Wire) Allegheny Energy, Inc.
(NYSE: AYE) today announced that the Virginia State Corporation Commission has issued an order regarding recovery of purchased power costs for Potomac Edison, an Allegheny subsidiary. In today
’s order, the Commission:
- Found that the ratemaking provisions of a memorandum of understanding (MOU), entered into by Allegheny and approved by the Commission, expire on December 31, 2008;
- Stated that it requires additional evidence and legal argument to set appropriate rates for 2008 and 2009; and
- Directed the company to file plans for meeting its projected load obligations in Virginia, including alternatives for placing generation in Allegheny’s Virginia rate base to serve Virginia customers.
The MOU was adopted in 2000 during Virginia’s restructuring of the electric utility industry and contains certain ratemaking provisions applicable during the rate cap and default service periods. In 2007, the Virginia General Assembly enacted legislation ending rate caps and default service on December 31, 2008.
On May 16, 2008, the Commission granted Potomac Edison an interim rate increase to recover certain costs for purchasing power to serve its Virginia customers. The interim increase is designed to allow the company to recover approximately $73 million for the 12-month period beginning on July 1, 2008. The interim rate increase is temporary and subject to refund until the Commission issues a final order. The Commission’s procedural schedule includes a public hearing on October 21, 2008.
Allegheny Energy
Headquartered in Greensburg, Pa., Allegheny Energy is an investor-owned electric utility with total annual revenues of over $3 billion and more than 4,000 employees. The company owns and operates generating facilities and delivers low-cost, reliable electric service to 1.6 million customers in Pennsylvania, West Virginia, Maryland and Virginia. For more information, visit the company’s Web site at www.alleghenyenergy.com.
Forward-Looking Statements
In addition to historical information, this release contains a number of "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Words such as anticipate, expect, project, intend, plan, believe, and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. These include statements with respect to: rate regulation and the status of retail generation service supply competition in states served by Allegheny Energy’s distribution business, Allegheny Power; financing plans; demand for energy and the cost and availability of raw materials, including coal; provider-of-last-resort and power supply contracts; results of litigation; results of operations; internal controls and procedures; capital expenditures; status and condition of plants and equipment; capacity purchase commitments; regulatory matters; and accounting issues. Forward-looking statements involve estimates, expectations and projections and, as a result, are subject to risks and uncertainties. There can be no assurance that actual results will not materially differ from expectations. Actual results have varied materially and unpredictably from past expectations. Factors that could cause actual results to differ materially include, among others, the following: plant performance and unplanned outages; changes in the price of power and fuel for electric generation; general economic and business conditions; changes in access to capital markets; complications or other factors that render it difficult or impossible to obtain necessary lender consents or regulatory authorizations on a timely basis; environmental regulations; the results of regulatory proceedings, including proceedings related to rates; changes in industry capacity, development and other activities by Allegheny Energy’s competitors; changes in the weather and other natural phenomena; changes in customer switching behavior and their resulting effects on existing and future load requirements; changes in the underlying inputs and assumptions, including market conditions used to estimate the fair values of commodity contracts; changes in laws and regulations applicable to Allegheny Energy, its markets or its activities; the loss of any significant customers or suppliers; dependence on other electric transmission and gas transportation systems and their constraints or availability; changes in PJM, including changes to participant rules and tariffs; the effect of accounting policies issued periodically by accounting standard-setting bodies; and the continuing effects of global instability, terrorism and war. Additional risks and uncertainties are identified and discussed in Allegheny Energy’s reports filed with the Securities and Exchange Commission.
Allegheny Energy, Inc.
Media contact:
Mark Nitowski, 724-838-6718
Manager, Corporate Communications
Media Hotline: 888-233-3583
E-mail: mnitows@alleghenyenergy.com
or
Investor contact:
Max Kuniansky, 724-838-6895
Executive Director, Investor Relations
and Corporate Communications
E-mail: mkunian@alleghenyenergy.com
