Allegheny Energy-DQE Merger Order Approved by Pennsylvania Public Utility Commission.HAGERSTOWN, Md.--(BUSINESS WIRE)--July 23, 1998-- Regulators Adopt Proposals That Would Ensure Competitive Electricity Market The Pennsylvania Public Utility Commission (PUC (Public Utility Commission) A regulatory body in every state in the U.S. that governs public utilities within its jurisdiction such as electricity, gas, oil, sewer, water, transportation and telephone service. Some states call it the Public Service Commission (PSC). ) today adopted an order which brings Allegheny Energy Allegheny Energy (NYSE: AYE) is a traditional public utility based in the Pittsburgh suburb of Greensburg. It services communities in Western Pennsylvania, Western Maryland, Northern West Virginia, Northwest Virginia. , Inc. (NYSE NYSE See: New York Stock Exchange : AYE) and DQE DQE Detective Quantum Efficiency DQE Duquesne Light Company DQE Detector Quantum Efficiency DQE Differential Quantum Efficiency DQE Design, Quality, Environment DQE DESEX Query Engine DQE Decontamination Quick & Easy (DQE, Inc.) , Inc. (NYSE: DQE) one step closer to offering the benefits of their proposed merger to consumers and shareholders. In amending its previous order on the merger, the PUC recognized Allegheny Energy's commitment to mitigating market power concerns and called on the Company to "demonstrate every good faith effort to ensure the timely establishment of a truly independent system operator," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a statement issued by Commissioner Nora Mead Brownell. The PUC order is in response to a Petition for Reconsideration filed by Allegheny Energy on June 12, in which the Company reiterated its commitment to a series of steps, including staying in and supporting the Midwest Independent System Operator (MISO), a compact of regional utilities that promotes the elimination of excess electricity transmission charges to encourage competition. The Company also committed to relinquishing control of 570 megawatts of generation from the Cheswick, Pa., generating station through at least June 30, 2000. In the unlikely event that the MISO does not have non-pancaked rates in effect by June 30, 2000, Allegheny Energy may divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. 2,500 megawatts of generation, subject to a PUC order. Although no written order has yet been issued, it appears that the PUC has adopted these measures, with modifications. "We are pleased that the PUC, upon reconsideration, recognized that it is in the best interests of the public to consummate the merger of Allegheny Energy and DQE without delay. It is also gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. that the Commissioners recognized that our proposal will mitigate any market power concerns while protecting consumers," said Alan J. Noia, Allegheny Energy Chairman, President, and Chief Executive Officer. "This merger will create a strong, regional company that will foster competition in the electricity market while keeping jobs and promoting economic growth in Pennsylvania. We now call on the Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. (FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability ) to act on our merger application before its August vacation period," Noia said. In addition to the approval of Pennsylvania regulators, Allegheny Energy and DQE have received approval of their merger by the shareholders of both companies, the Maryland Public Service Commission, and the Nuclear Regulatory Commission Nuclear Regulatory Commission (NRC), an independent U.S. government commission, created by the Energy Reorganization Act of 1974 and charged with licensing and regulating civilian use of nuclear energy to protect the public and the environment. . The companies expect decisions soon from the FERC, the U.S. Department of Justice/Federal Trade Commission, and the Securities and Exchange Commission. Earlier this month, Allegheny Energy reached a settlement with Pittsburgh Mayor Tom Murphy in which the City agreed to support the merger and the Company committed to contribute $4 million over the next four years to Pittsburgh's economic development fund. The Ohio Public Utilities Commission also publicly endorsed the merger this month. Overall, the merger will result in about $1 billion in synergy savings over 10 years, which will be shared with consumers. The new Allegheny Energy will serve nearly two million customers in five states, making it the tenth largest investor-owned utility in the nation based on total kilowatt-hour sales. Headquartered near Hagerstown, Md., Allegheny Energy, with operating subsidiaries doing business as Allegheny Power, currently provides electric service to 1.4 million customers in parts of Maryland, Ohio, Pennsylvania, Virginia, and West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. . DQE, an electric utility holding company based in Pittsburgh, Pa., has subsidiaries engaged in the production, transmission, and sale of electric energy. Duquesne Light Company, DQE's principal subsidiary, serves more than 580,000 electricity customers in the greater Pittsburgh area. The proposed merger was announced in April 1997.
CONTACT: Allegheny Energy
Cynthia A. Shoop
301/665-2718
E-Mail: cshoop@alleghenypower.com
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