Allegheny Power makes offer for Hagerstown, Md. distribution system.HAGERSTOWN, Md.--(BUSINESS WIRE)--July 24, 1996--Twenty million dollars and a five-year rate freeze highlighted an offer presented yesterday to the City of Hagerstown, Md. by Allegheny Power subsidiary Potomac Edison for the city's electric distribution system. "This proposed purchase will be good for the City of Hagerstown and for Allegheny Power," said Alan J. Noia, Allegheny Power president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The cash and other benefits will give the city financial flexibility and economic development opportunities, while allowing Allegheny Power to grow its customer base in preparation for competition." The offer includes a cash payment of $14.5 million for the book value of the distribution system, plus an additional $5.5 million premium over book, for a total of $20 million. If city residents give the thumbs up to the sale in a November referendum referendum, referral of proposed laws or constitutional amendments to the electorate for final approval. This direct form of legislation, along with the initiative, was known in Greece and other early democracies. vote, they will also have their electric rates frozen for five years. Rates would be capped thereafter, with increases by no more than the Consumer Price Index annually. Also in the offer are multi-million dollar technical upgrades and improvements to the electrical system, a new Allegheny Power satellite office to be opened downtown, a strong package of job guarantees for current city employees, and enhanced customer service offerings. To develop the proposal, Allegheny Power worked closely with a city-appointed study committee for more than a year. The committee endorsed the offer that was presented to Hagerstown's mayor and council. The city has 17,000 customers and annual electric revenues of nearly $17.5 million. Allegheny Power companies provide electric service to customers in parts of Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). , Ohio, Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). 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. . CONTACT: Allegheny Power Donald L. Whipp, 412/838-6272 |
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