Last month, Allegheny, along with a group of interested parties, submitted a settlement agreement to the Commission resolving issues related to the company’s July 2009 financing application. Consistent with the now-approved settlement:
• Allegheny is authorized to issue an additional $105 million in bonds to finance the remaining portion of the $550 million project, plus related financing costs; and
• Allegheny agreed to withdraw its July 2009 request for an interim rate increase of $82 million for fuel and purchased power costs. The company will pursue recovery of those costs as part of its annual fuel rate case, which was filed on Sept. 1.
“We are committed to environmental stewardship, and the Fort Martin scrubbers are key to that effort,” stated Paul J. Evanson, Chairman, President and Chief Executive Officer of Allegheny Energy. “We appreciate the Commission’s timely approval of this proposal, which should save customers more than $40 million compared to traditional ratemaking.”
Funds collected from Allegheny’s West Virginia customers through a surcharge will be dedicated to the repayment of the ratepayer obligation bonds. Based on current estimates, the additional surcharge would increase the bill of a typical West Virginia residential customer using 1,000 kilowatt-hours of electricity per month by .76, or less than one percent.
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 1.6 million customers in Pennsylvania, West Virginia, Maryland and Virginia. For more information, visit www.alleghenyenergy.com .
• Allegheny is authorized to issue an additional $105 million in bonds to finance the remaining portion of the $550 million project, plus related financing costs; and
• Allegheny agreed to withdraw its July 2009 request for an interim rate increase of $82 million for fuel and purchased power costs. The company will pursue recovery of those costs as part of its annual fuel rate case, which was filed on Sept. 1.
“We are committed to environmental stewardship, and the Fort Martin scrubbers are key to that effort,” stated Paul J. Evanson, Chairman, President and Chief Executive Officer of Allegheny Energy. “We appreciate the Commission’s timely approval of this proposal, which should save customers more than $40 million compared to traditional ratemaking.”
Funds collected from Allegheny’s West Virginia customers through a surcharge will be dedicated to the repayment of the ratepayer obligation bonds. Based on current estimates, the additional surcharge would increase the bill of a typical West Virginia residential customer using 1,000 kilowatt-hours of electricity per month by .76, or less than one percent.
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 1.6 million customers in Pennsylvania, West Virginia, Maryland and Virginia. For more information, visit www.alleghenyenergy.com .
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