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Allegheny Power Announces West Virginia Rate Decision

^{Published on 2010-06-25 12:42:04 - Market Wire}
 

GREENSBURG, Pa.--([ BUSINESS WIRE ])--Allegheny Energy, Inc. (NYSE: AYE), today announced that the Public Service Commission of West Virginia issued an order granting the companya™s request for a base rate increase. The increase applies to Monongahela Power and The Potomac Edison Company, the companya™s two electric distribution utilities in the state, which do business as Allegheny Power.

Todaya™s order approved a settlement agreement between Allegheny Power, Staff of the Public Service Commission, the Consumer Advocate Division and other parties. Key terms and provisions of the agreement were detailed in Alleghenya™s April 5, 2010 news release.

As a result of the Commission order, the monthly bill for a residential customer using 1,000 kilowatt-hours will increase by $4.10, or 4.5 percent, on June 29, 2010. Even with the increase, Allegheny Powera™s rates in West Virginia will remain significantly below the national average price for residential customers.

Allegheny Power has not had a base rate increase in West Virginia since 1994. Base rates reflect the utilitiesa™ cost of operations and capital investment. Fuel costs are recovered through a separate mechanism. Since the companya™s last base rate increase, the Consumer Price Index has risen by more than 45 percent.

To help customers manage their bills, Allegheny Power offers a budget plan, special payment plans and access to energy assistance programs. Alleghenya™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 [ www.alleghenypower.com ] and click on the Watt Watchers section, or call the companya™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 1.5 million customers in Pennsylvania, West Virginia and Maryland. 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 Energya™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 Energya™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 likelihood and timing of the completion of the proposed merger with FirstEnergy, the terms and conditions of any required regulatory approvals of the proposed merger, the impact of the proposed merger on Alleghenya™s employees and the potential diversion of managementa™s time and attention from ongoing business during this time period; general economic conditions; the effect of accounting pronouncements issued periodically by accounting standard-setting bodies and accounting issues facing our organization; and other risks, including the continuing effects of global instability, terrorism and war. Additional risks and uncertainties are identified and discussed in Allegheny Energya™s reports filed with the Securities and Exchange Commission.