The Maryland Public Service Commission approved Allegheny Energy Inc.'s plan to transfer about 1,300 Mw worth of generating capacity from its Potomac Edison subsidiary to its nonregulated energy supply affiliate Allegheny Energy Supply Co. LLC at book value. The US Federal Energy Regulatory Commission and the US Securities and Exchange Commission still must approve the transaction.
Following completion of the transfer, expected July 1, Allegheny Energy Supply will have more than 5,400 Mw of generating capacity to sell in the deregulated marketplace. The company is also awaiting state regulatory decisions on the transfer of an additional 775 Mw of the Virginia and West Virginia jurisdictional assets of its Potomac Edison subsidiary to Allegheny Energy Supply later this year.
"The decision by the PSC is yet another step in the growth of our portfolio of nonregulated generation and advances our strategy of becoming a national energy supplier,'' said Peter J. Skrgic, president, Allegheny Energy Supply.
"Allegheny Energy Supply has made substantial progress toward its goal of moving from a regional supplier to a national energy supplier. In 1999, we added 88 Mw of generating capacity in Springdale, Pa., and we recently announced construction of another 540 Mw at that site. Additionally, we just purchased 83 Mw of coal-fired generation at Conemaugh generating station near Johnstown, Pa., which provides us with capacity within the New Jersey-Pennsylvania-Maryland Interconnection."
He also said Allegheny is installing 220 Mw of natural gas-fired combustion turbine generation throughout Pennsylvania this year.