Allegheny Energy, Inc. ( AYE), today announced that the
Public Service Commission of West Virginia issued an order granting the
company’s request for a base rate increase. The increase applies to
Monongahela Power and The Potomac Edison Company, the company’s two
electric distribution utilities in the state, which do business as
Allegheny Power.
Today’s order approved a settlement agreement between Allegheny Power,
Staff of the Public Service Commission, the Consumer Advocate Division
and other parties. Key terms and provisions of the agreement were
detailed in Allegheny’s April 5, 2010 news release.
As a result of the Commission order, the monthly bill for a residential
customer using 1,000 kilowatt-hours will increase by $4.10, or 4.5
percent, on June 29, 2010. Even with the increase, Allegheny Power’s
rates in West Virginia will remain significantly below the national
average price for residential customers.
Allegheny Power has not had a base rate increase in West Virginia since
1994. Base rates reflect the utilities’ cost of operations and capital
investment. Fuel costs are recovered through a separate mechanism. Since
the company’s last base rate increase, the Consumer Price Index has
risen by more than 45 percent.
To help customers manage their bills, Allegheny Power offers a budget
plan, special payment plans and access to energy assistance programs.
Allegheny’s Watt Watchers programs also provide information and programs
to help its customers manage their electricity bills and use energy more
efficiently. For more information and tips on energy efficiency and
conservation, visit www.alleghenypower.com
and click on the Watt Watchers section, or call the company’s Customer
Service Center at 1-800-Allegheny (1-800-255-3443).
Allegheny Energy
Headquartered in Greensburg, Pa., Allegheny Energy is an investor-owned
electric utility with total annual revenues of over $3 billion and more
than 4,000 employees. The company owns and operates generating
facilities and delivers low-cost, reliable electric service to 1.5
million customers in Pennsylvania, West Virginia and Maryland. For more
information, visit our Web site at www.alleghenyenergy.com.
Forward-Looking Statements
In addition to historical information, this release may contain a
number of "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. Words such as anticipate,
expect, project, intend, plan, believe, and words and terms of similar
substance used in connection with any discussion of future plans,
actions, or events identify forward-looking statements. These include
statements with respect to: rate regulation and the status of retail
generation service supply competition in states served by Allegheny
Energy’s distribution business, Allegheny Power; financing plans; demand
for energy and the cost and availability of raw materials, including
coal; provider-of-last-resort and power supply contracts; results of
litigation; results of operations; internal controls and procedures;
capital expenditures; status and condition of plants and equipment;
capacity purchase commitments; and regulatory matters. Forward-looking
statements involve estimates, expectations and projections and, as a
result, are subject to risks and uncertainties. There can be no
assurance that actual results will not materially differ from
expectations. Actual results have varied materially and unpredictably
from past expectations. Factors that could cause actual results to
differ materially include, among others, the following: plant
performance and unplanned outages; changes in the price of power and
fuel for electric generation; general economic and business conditions;
changes in access to capital markets and actions of rating agencies;
complications or other factors that render it difficult or impossible to
obtain necessary lender consents or regulatory authorizations on a
timely basis; environmental regulations; the results of regulatory
proceedings, including proceedings related to rates; changes in industry
capacity, development and other activities by Allegheny Energy’s
competitors; changes in the weather and other natural phenomena; changes
in customer switching behavior and their resulting effects on existing
and future load requirements; changes in the underlying inputs and
assumptions, including market conditions used to estimate the fair
values of commodity contracts; changes in laws and regulations
applicable to Allegheny Energy, its markets or its activities; the loss
of any significant customers or suppliers; dependence on other electric
transmission and gas transportation systems and their constraints or
availability; inflationary and interest rate trends changes in market
rules, including changes to PJM participant rules and tariffs; the
likelihood and timing of the completion of the proposed merger with
FirstEnergy, the terms and conditions of any required regulatory
approvals of the proposed merger, the impact of the proposed merger on
Allegheny’s employees and the potential diversion of management’s time
and attention from ongoing business during this time period; general
economic conditions; the effect of accounting pronouncements issued
periodically by accounting standard-setting bodies and accounting issues
facing our organization; and other risks, including the continuing
effects of global instability, terrorism and war. Additional risks and
uncertainties are identified and discussed in Allegheny Energy’s reports
filed with the Securities and Exchange Commission.
