Allegheny Energy merger will bring changes to customers

Maryland ratepayers will get 50-cent credit
Kevin Spradlin
Cumberland Times-News

CUMBERLAND — Maryland customers of Greensburg, Pa.-based Allegheny Energy Inc. will see changes after the company’s pending merger with Ohio-based FirstEnergy Corp., but they stand to be small ones, at least in the first few years.

The companies submitted an application Thursday to the Maryland Public Service Commission for authorization of the merger. They first announced their $4.7 billion merger agreement in February.

The combined company will be based in Akron at FirstEnergy’s current headquarters. But it will operate a regional headquarters somewhere in its Western Maryland service area, according to Allegheny Energy spokesman David Neurohr. The planned location of that headquarters hasn’t been released.

Maryland customers will receive a credit of about 50 cents per month on their energy bills over the two years following the merger. The credit will go to residential customers and will appear as a line item on each monthly statement, Neurohr said. For the company, that will add up to about $2.5 million over the two-year period.

It’s a step taken to demonstrate to the PSC that the merger will provide a concrete benefit to ratepayers, he explained.

In the application, FirstEnergy also included a guarantee that none of Allegheny Energy’s utility workers will be laid off as a result of the merger. That guarantee extends for two years after the merger is finalized.

Allegheny Energy employs about 380 people in Maryland, and about 4,400 overall.

The provision applies to the “physical work force,” Neurohr said — employees who maintain the wires and rights of way and handle other utility maintenance. It does not include office or executive staff.

FirstEnergy has committed to maintaining the same levels of community development and charitable donations as Allegheny Energy currently contributes in its service area for three years after closing the merger. After that, FirstEnergy will contribute an amount described as consistent with its donations in the company’s other service areas.

Neurohr said the PSC is required by law to provide a decision on the merger within 180 days, but has the ability to extend that period by another 45 days.

In the meantime, the merger must also be approved by the Federal Energy Regulatory Commission and regulatory agencies in Pennsylvania, West Virginia and Virginia, states also served by Allegheny Energy. Applications have been filed in each of those states, except in Virginia, where the companies plan to submit an application in the near future.

If authorized, the merger is set to close in the first half of 2011.


If you are thinking of buying or selling real estate in Garrett County or Deep Creek Lake, Maryland, call Jay Ferguson of Railey Realty for all of your real estate needs! 877-563-5350 Deep Creek Lake Info, Business Directories, Calssified Ads, Events & more! Advertise on http://www.deepcreekalive.com/!