Allegheny Energy settles on terms of merger plan
Share with others:
The merger of Greensburg utility Allegheny Energy and Akron, Ohio-based FirstEnergy has come one step closer to completion with a settlement designed to help preserve jobs and provide a range of benefits for customers.
The two companies have agreed to a proposed settlement with 18 parties who opposed their merger application with the state Public Utility Commission. The settlement, filed late Monday afternoon with the PUC, includes provisions regarding local employment levels over the next five years, nearly $11 million in customer credits for West Penn Power residential customers over a three-year period, and a distribution rate freeze through Oct. 1, 2012, for customers of FirstEnergy's current Pennsylvania electric companies, Metropolitan Edison, Pennsylvania Electric and Pennsylvania Power.
Local employment was one of the first major issues raised by observers when the $8.5 billion deal was announced May 14. Now, state Sen. Kim Ward, R-Hempfield, whose 39th District includes Greensburg and who said the companies' initial assurances of job retention in the area were not strong enough, has signed on to the agreement.
Under the deal, Allegheny Energy's current staffing of 845 will not fall below 800 in the first year after the merger, 675 in the second year, 650 in the third year and 600 in the fourth and fifth years.
The agreement also contains a bundle of commitments geared toward customers of Allegheny Energy subsidiary West Penn Power, including improved reliability, increased funding for the West Penn Power Customer Assistance Program, a credit for costs related to energy-efficiency and conservation programs, contributions to the West Penn Power Sustainable Energy Fund and outreach to West Penn Power customers to promote and encourage customer choice and shopping.
First Published October 26, 2010 12:00 am
