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Allegheny Energy Announces West Virginia Fuel, Purchased Power Cost Decision

^{Published on 2009-12-30 06:15:11 - Market Wire}
 

GREENSBURG, Pa.--([ BUSINESS WIRE ])--Allegheny Energy, Inc. (NYSE: AYE) announced that the Public Service Commission of West Virginia issued an order on December 29 regarding the company's recovery of fuel and purchased power costs. The Commission's order approved a settlement agreement between Allegheny, the Consumer Advocate Division, Staff of the Public Service Commission and the West Virginia Energy Users Group.

Under a cost recovery clause re-established by the Commission in 2007, rates are adjusted annually to reflect upward and downward changes in the cost of fuel and purchased power. Allegheny's unrecovered costs have grown steadily in the past year, as actual expenses exceeded the amount reflected in customer rates.

As described in the company's news release dated December 3, 2009, the agreement calls for Allegheny's West Virginia rates to be increased by $118 million (annualized) on January 1, 2010, to recover increased costs of fuel and purchased power.

As a result of the order, the monthly bill for a residential customer using 1,000 kilowatt-hours will be about $91, an increase of $7.65 compared to current rates. Even with the increase, Allegheny's rates in West Virginia will remain well below the national monthly average cost of nearly $117 for residential customers.

To help customers manage their bills, Allegheny offers a budget plan, special payment plans and access to energy assistance programs. Allegheny Power's Watt Watchers programs also provide information and programs to help its customers manage their electricity bills and use energy more efficiently. For more information and tips on energy efficiency and conservation, visit the company's Web site at [ www.alleghenypower.com ] and click on the Watt Watchers section, or call the company's Customer Service Center at 1-800-Allegheny (1-800-255-3443).

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 our Web site at [ www.alleghenyenergy.com ].

Forward-Looking Statements

In addition to historical information, this release may contain 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; and regulatory matters. 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 and actions of rating agencies; 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; inflationary and interest rate trends changes in market rules, including changes to PJM participant rules and tariffs; the effect of accounting pronouncementsissued periodically by accounting standard-setting bodies and accounting issues facing our organization; 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.