On May 27, 2010, Utilities FirstEnergy Corporation (FE) and Allegheny Energy Inc. (AYE) filed an application with the Maryland Public Service Commission seeking approval for their proposed merger.
In the filing, the companies outlined their commitment to support jobs, customers, communities and retail competition in Maryland .
The companies’ application puts forth intention of making Potomac Edison, currently an Allegheny Energy subsidiary, its regional headquarters as part of a larger FirstEnergy family of operating companies.
In addition, the company also intends to provide direct rate credits to Potomac Edison’s Maryland residential customers. Potomac Edison’s residential electric utility distribution customers would receive immediate rate benefits of $2.5 million over two years. Potomac Edison has about 250,000 Maryland customers.
Furthermore, the companies plan to support retail competition in Maryland through FirstEnergy’s competitive subsidiary, FirstEnergy Solutions. FirstEnergy would bring additional competition into Maryland’s retail electric supply market by adding residential customers in the Potomac Edison service territory and other parts of the state.
The companies had previously filed applications with the Federal Energy Regulatory Commission, the Pennsylvania Public Utility Commission and the Public Service Commission of West Virginia. They also plan to file for regulatory approval in Virginia soon.
Akron-based FirstEnergy, on February 11, 2010, announced that it would buy rival Allegheny in a $4.7 billion stock deal, creating one of the biggest power companies in the U.S. serving 6.1 million customers from Ohio to New Jersey. The merger is expected to close in the first half of 2011, subject to customary closing conditions, including shareholder and regulatory approvals.
Read the full analyst report on “FE”
Read the full analyst report on “AYE”
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