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ARMCO AND ALLEGHENY LUDLUM FIGHT COSTLY PUC RULING

 ARMCO AND ALLEGHENY LUDLUM FIGHT COSTLY PUC RULING
 BUTLER, Pa./PITTSBURGH, Pa., June 17 /PRNewswire/ -- Armco Advanced


Materials Company, Butler, and Allegheny Ludlum Corporation (NYSE: ALS), Pittsburgh, today jointly announced filing of an appeal in Commonwealth Court of Pennsylvania to reverse a Pennsylvania Public Utilities Commission (PUC) ruling which would require West Penn Power Company to purchase and distribute overpriced electricity from a proposed private power plant.
 "More than 600,000 West Penn customers would be hit with a rate hike if the PUC ruling is allowed to stand," spokesmen for the specialty steel companies said. They estimate that the ruling would cost all ratepayers $35 million per year or about $1 billion over the 30-year life of the proposed but unneeded power plant.
 A May 22, 1992 PUC ruling ordered West Penn Power Company to purchase electricity from the proposed 80,000 kilowatt, privately owned Shannopin power plant in Greene County, PA. The PUC's order was issued despite strong opposition by West Penn Power, Allegheny Ludlum, Armco, and the state's Office of Consumer Advocate. West Penn Power Company has stated that it does not need the additional electricity to serve its customers' needs.
 The PUC's order and the appeal to Commonwealth Court are the most recent events in a long-running dispute between the out-of-state developers of the power plant and West Penn, West Penn's two largest customers, Armco and Allegheny Ludlum, and the Office of Consumer Advocate.
 According to West Penn Power, Armco, Allegheny Ludlum, and the Office of Consumer Advocate, West Penn's current generating plants are sufficient to serve the needs of its customers until the next century and no new power plants are needed on the system.
 The principal investors in the proposed power plant are Consumers Power Company, a public utility holding company based in Michigan, the Sagamore Corporation, a privately held venture capital company located in New Canaan, Conn., American Ventures, Inc. of Greenwich, Conn., and the Nally Corporation, a Liberian corporation. All profit from the sale of power generated by the plant would flow to the developers and, therefore, West Penn Power and its shareholders receive no benefit.
 Armco and Allegheny have indicated that the substantial cost increases their operations would incur if the Shannopin power plant is brought on line could have a negative impact on employment in their Western Pennsylvania operations. Armco has about 2,800 employees at its specialty steel manufacturing plant in Butler, and Allegheny Ludlum employs about 3,500 in Brackenridge, West Leechburg, Vandergrift, and its corporate headquarters in Pittsburgh.
 The PUC is also considering several other petitions filed by cogeneration developers seeking to force West Penn to purchase unneeded electricity. West Penn, Armco, Allegheny Ludlum, the Office of Consumer Advocate, and others are opposing those petitions as well.
 "Misguided efforts to force more costly and unnecessary electric power into the West Penn system are not in the best interests of consumers and the economy of our region," the specialty steel spokesmen said.
 -0- 6/17/92
 /CONTACT: A. Lee Bland of Armco, 201-316-5266, or Bert Delano of Allegheny Ludlum, 412-2394-2813/
 (AS ALS) CO: Armco Advanced Materials Co.; Allegheny Ludlum Corporation ST: Pennsylvania IN: MNG SU:


TQ -- NY030 -- 1018 06/17/92 10:48 EDT
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Publication:PR Newswire
Date:Jun 17, 1992
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