| 2008-03-03 | Contract/Agreements | GREENSBURG, Pa.--(BUSINESS WIRE)--Allegheny Energy, Inc. (NYSE: AYE) announced today that the Potomac-Appalachian Transmission Highline (PATH), Alleghenys joint venture transmission project with American Electric Power (NYSE: AEP), reached a key regulatory milestone with the Federal Energy Regulatory Commissions approval of incentive rate treatment.
The incentive rate treatment is intended to encourage new investment in electric transmission lines that will improve the reliability of electric service.
The companies requested and the commission granted the following incentives:
a return on equity of 14.3 percent, which includes a 50 basis point incentive that is conditioned on membership in the regional transmission organization, PJM Interconnection; inclusion of 100 percent of construction work in progress in the rate base, which allows recovery of a return prior to the in-service date of PATH; recovery of prudently incurred start-up business and administrative costs incurred prior to the time the rates go into effect; and recovery of prudently incurred development and construction costs if PATH is abandoned as a result of factors beyond the control of PATH or its parent companies. The commission plans to hold hearings on PATHs proposed formula rate, including the cost of service formula that would be used to calculate annual revenue requirements for the project.
In 2007, PJM Interconnection, the regional grid operator for a 13-state area, approved construction of the proposed line. The project includes 244 miles of 765-kilovolt (kV) transmission from AEPs Amos substation near St. Albans, W.Va., to Alleghenys Bedington substation, northeast of Martinsburg, W.Va., and 46 miles of twin-circuit 500-kV transmission from Bedington to a new substation near Kemptown, southeast of Frederick, Md. Based on current plans, PATH is estimated to cost approximately $1.8 billion and Allegheny currently estimates that its total investment in the project will be approximately $1.2 billion.
PATH will seek regulatory approvals from the utility commissions in the respective states the line crosses.
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 1.6 million customers in Pennsylvania, West Virginia, Maryland and Virginia. For more information, visit the companys Web site at www.alleghenyenergy.com.
Forward-Looking Statements
In addition to historical information, this release contains 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: regulation and the status of retail generation service supply competition in states served by Allegheny Energys 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; regulatory matters; and accounting issues. 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 unpredic |
| 2008-02-22 | Earnings/Dividends | GREENSBURG, Pa.--(BUSINESS WIRE)--The Board of Directors of Allegheny Energy, Inc. (NYSE: AYE) today authorized a cash dividend of $0.15 per outstanding share of the companys common stock. The dividend is payable March 24, 2008, to shareholders of record at the close of business on March 10, 2008.
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 nearly 1.6 million customers in Pennsylvania, West Virginia, Maryland and Virginia. For more information, visit our Web site at www.alleghenyenergy.com.
Forward-Looking Statements
In addition to historical information, this release contains 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 Energys 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; regulatory matters; and accounting issues. 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; 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 Energys 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; changes in PJM, including changes to participant rules and tariffs; the effect of accounting policies issued periodically by accounting standard-setting bodies; and the continuing effects of global instability, terrorism and war. Additional risks and uncertainties are identified and discussed in Allegheny Energys reports filed with the Securities and Exchange Commission.
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| 2008-02-08 | Earnings/Dividends | GREENSBURG, Pa.--(BUSINESS WIRE)--Allegheny Energy, Inc. (NYSE: AYE) today reported financial results for the three months and twelve months ended December 31, 2007.
$ millions
Per share
Three Months Ended December 31
2007
2006
2007
2006
Consolidated net income-GAAP $110.4 $64.6 $0.65 $0.38 Adjusted net income 78.6 61.8 0.46 0.37 Twelve Months Ended December 31
Consolidated net income-GAAP $412.2 $319.3 $2.43 $1.89 Adjusted net income 384.8 307.8 2.26 1.83 Adjusted results for the fourth quarter of 2007 exclude $31.8 million of after-tax income related to a litigation settlement with Merrill Lynch & Co., Inc., primarily representing the reversal of accrued interest no longer required. Adjusted net income for the three months ended December 31, 2006 excludes results from discontinued operations.
Adjusted net income is a non-GAAP financial measure. For information on adjustments for both twelve-month periods, and the calculation of adjusted net income for all periods, see the attached reconciliation of non-GAAP financial measures.
2007 was a year of strong financial performance for Allegheny. We increased earnings per share by over 20 percent, achieved an investment grade credit rating, and reinstated our dividend, said Paul J. Evanson, Chairman, President and Chief Executive Officer of Allegheny Energy.
As we begin 2008, we remain focused on growing earnings and building shareholder value by improving power plant performance, expanding our transmission system, and controlling costs. We are well positioned for strong earnings growth this year and beyond, Evanson said.
Fourth Quarter Consolidated Results
Adjusted net income for the fourth quarter of 2007 increased by $16.8 million compared to the same period in 2006. Key factors contributing to the improved results include:
Operating revenues increased by $49.4 million compared to the fourth quarter of 2006, reflecting higher market prices, higher generation rates in Pennsylvania and increased retail sales, partially offset by lower generation output, reflecting unplanned outages at power plants. Fuel expense increased by $20.5 million, reflecting higher coal prices. Purchased power and transmission expense increased by $14.9 million, primarily due to increased purchases of energy and associated services from third parties and increased PURPA generation purchases. Deferred energy cost decreased by $6.4 million, largely due to a change in Maryland PURPA generation costs and West Virginia fuel and energy costs that are recovered in rates. Operations and maintenance expense increased by $2.8 million, primarily due to increased special maintenance expense at power plants. Taxes other than income taxes increased by $9.9 million. Results for the fourth quarter of 2006 benefited from a decrease in reserves related to an audit settlement in 2006. Income taxes, excluding the effects of the Merrill Lynch litigation settlement, decreased by $6.3 million, largely due to the effect of audit settlements associated with open tax positions in the fourth quarter of 2006. Adjusted EBITDA for the fourth quarter of 2007 was $243.6 million, an increase of $8.9 million compared to adjusted EBITDA for the same quarter of the prior year. EBITDA is a non-GAAP financial measure. The calculation of EBITDA and a reconciliation of EBITDA to net income are attached to this release.
Fourth Quarter Segment Results
Three Months Ended December 31
($ millions)
2007
2006
Generation and Marketing:
Net income (loss) - GAAP $84.4 $(1.3) Adjusted net income (loss) 52.6 (5.1) Delivery and Services:
Net income - GAAP $26.0 $65.9 Adjusted net income
26.0
66.9 Adjusted results for the fourth quarter of 2007 for the Generation and Marketing segment exclude the impact of the Merrill Lynch litigation settlement. Adjusted results for 2006 for both segments exclude results from discontinued operations.
Generation and Mar |
| 2008-01-28 | Contract/Agreements | GREENSBURG, Pa.--(BUSINESS WIRE)--Allegheny Energy, Inc. (NYSE: AYE) today announced that it and Merrill Lynch & Co., Inc. have resolved litigation between the two parties. The case relates to a dispute regarding Alleghenys purchase of Merrills Global Energy Market trading business in 2001.
Under the settlement agreement, Merrill will convey its minority equity interest in Allegheny Energy Supply Company, LLC to Allegheny. Allegheny will make a cash payment of $50 million to Merrill, and all litigation and claims associated with the case will be dismissed.
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 over 1.5 million customers in Pennsylvania, West Virginia, Maryland and Virginia. For more information, visit the companys Web site at www.alleghenyenergy.com.
Forward-Looking Statements
In addition to historical information, this release contains 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: regulation and the status of retail generation service supply competition in states served by Allegheny Energys 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; regulatory matters; and accounting issues. 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: changes in the price of power and fuel for electric generation; general economic and business conditions; changes in access to capital markets; 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 Energys competitors; changes in the weather and other natural phenomena; 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; changes in PJM, including changes to participant rules and tariffs; the effect of accounting policies issued periodically by accounting standard-setting bodies; and the continuing effects of global instability, terrorism and war. Additional risks and uncertainties are identified and discussed in Allegheny Energys reports filed with the Securities and Exchange Commission.
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