City of Pittsburgh and Allegheny Energy Reach Agreement.PITTSBURGH--(BUSINESS WIRE)--July 8, 1998--Mayor Tom Murphy announced today that the City of Pittsburgh has reached settlement with 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. in the City's pursuit of lower electric utility costs for consumers. Mayor Murphy said, "as a result of our efforts to boost competition and to prevent a monopoly in local electric services, city ratepayers will realize at least $300 million in rate savings over the next ten years. This action will result in a 12-20% reduction in rates for customers in the 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.) service territory after the merger is approved." Allegheny Energy has also agreed to support the City's efforts to gain 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). approval for special rates to the Nine Mile Run and South Side Works Redevelopment Zones. Upon merger completion, Allegheny Energy has further agreed to contribute $4 million over the next four years to the City's development fund, which supports economic development projects throughout the City. "This agreement represents a positive step in our efforts to move our merger forward," said Alan J. Noia, Allegheny Energy Chairman, President and Chief Executive Officer. "We are pleased to have the City of Pittsburgh's support for our merger, and we look forward to working together to bring benefits to Pittsburgh and its citizens, beginning with our merger with DQE. We are especially looking forward to being part of the Pittsburgh business community." The City of Pittsburgh has actively opposed the proposed merger on the basis that it would result in an impermissible im·per·mis·si·ble adj. Not permitted; not permissible: impermissible behavior. im concentration of market power in the region and, therefore, adversely affect the already high Duquesne Light Company (DQE) utility rates. The City has pursued actions on this matter in federal court, at the Public Utility Commission (PUC) and at 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. . The terms of the agreement include a commitment by Allegheny Energy to join the Midwest Independent System Operator (MISO), a compact of regional utilities that agree to eliminate excess electricity transmission charges in order to encourage competition. Committed to making its merger a model of cooperation, Allegheny Energy is taking steps to mitigate any market power concerns relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its merger with DQE. The Company will stay in and support the MISO and will relinquish control of 570 megawatts of generation from the Cheswick, PA, generating station through June 30, 2000. In the unlikely event that MISO is not operational by June 30, 2000, Allegheny Energy will 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. Given these accomplishments the Mayor stated that, "it is now in the best interests of the public that Allegheny Energy's proposed acquisition of DQE be consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. ." The Mayor has agreed to withdraw his objections to the merger.
CONTACT: Peg McCormick Barron
412/255-2619
Cyndi Shoop
301/665-2718
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