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ALLEGHENY & WESTERN ENERGY CORPORATION ANNOUNCES RESULTS FOR QUARTER ENDED SEPT. 30, 1993, AND RATE ORDER FOR GAS DISTRIBUTION UNIT

 CHARLESTON, W.Va., Nov. 15 /PRNewswire/ -- Allegheny & Western Energy Corporation (NASDAQ: ALGH), (A&W) reported a net loss of $.1 million or $.02 per share for its first quarter ended Sept. 30, 1993, after consideration of a non-recurring credit of $1.6 million related to the cumulative effect of a change in the method of accounting for income taxes. This compares to a net loss of $1.6 million or $.20 per share incurred for the period ended Sept. 30, 1992. The company historically reports a loss in its first fiscal quarter as a result of the seasonal, weather-sensitive nature of its gas distribution unit, Mountaineer Gas Company (Mountaineer). Mountaineer historically contributes to profits during the second and third quarters of the fiscal year which ends June 30. A&W also reported that it purchased an additional 128,378 shares of its common stock during the quarter, bringing the total number of shares to 344,228 acquired under the repurchase program.
 The company incurred a pre-tax loss of $2.5 million during the current period compared to a loss of $2.3 million for the period ended Sept. 30, 1992. This increase was primarily the result of normal labor and benefit cost increases of Mountaineer.
 Mountaineer filed a request with the Public Service Commission of West Virginia (PSCWV) for increased base rates in January 1993. On Oct. 29, 1993, the PSCWV issued an order, effective Nov. 1, 1993, which among other matters, provides for a 10.1 percent return on equity and rate increases which will generate additional annual revenues of $3.4 million under normal operating conditions. Mountaineer, in its original filing, requested a return on equity of 12.3 percent and rate increases which would generate additional annual revenues of $7.5 million. On Nov. 8, 1993, Mountaineer filed a petition with the PSCWV for reconsideration of several issues contained in the order.
 ALLEGHENY & WESTERN ENERGY CORPORATION
 (In thousands, except per share amounts)
 (Unaudited)
 Three Months Ended Sept. 30 1993 1992
 Revenues $22,806 $19,108
 Loss before income taxes and cumulative
 effect of change in accounting principle (2,546) (2,256)
 Loss before cumulative effect of change
 in accounting principle (1,682) (1,579)
 Cumulative effect of change in method of
 accounting for income taxes 1,562 --
 Net loss (120) (1,579)
 Average shares outstanding 7,815,736 8,083,188
 Per share:
 Loss before cumulative effect of change
 in accounting principle $(.22) $(.20)
 Cumulative effect of change in method
 of accounting for income taxes $.20 --
 Net loss $(.02) $(.20)
 Allegheny & Western Energy Corporation, based in Charleston, is a diversified natural gas company, and owns Mountaineer Gas Company, the largest gas distribution utility in West Virginia, operating approximately 3,600 miles of natural gas distribution pipeline.
 -0- 11/15/93
 /CONTACT: W. Merwyn Pittman of Allegheny & Western, 304-343-4567/
 (ALGH)


CO: Allegheny & Western Energy Corporation; Mountaineer Gas Company ST: West Virginia IN: OIL SU: ERN

DM-JM -- PG009 -- 4550 11/15/93 14:41 EST
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Publication:PR Newswire
Date:Nov 15, 1993
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