Allegheny Energy, Inc.’s (AYE) electric delivery business unit, Allegheny Power, yesterday filed a petition with the Public Service Commission of West Virginia for the recovery of its fuel and purchased power in the state.
Allegheny Power consists of Allegheny Energy’s three regulated electric utilities – Monongahela Power Company, The Potomac Edison Company and West Penn Power Company. The filing is in line with company’s aim to improve the bottom line in each state of its service area. The company has already been approved higher generation rates in Pennsylvania and Maryland, while in Virginia its request for recovery of purchased power costs has been granted.
Allegheny Power proposed recovery of incurred costs of $82 million for fuel and purchased power, and to recover projected costs of $61 million from the state regulatory commission. If approved, the new rates would be effective January 1, 2010. This will inflate the monthly bill of an average residential customer with a consumption of 1,000 kilowatt-hours by $9.67 to $93. However even after the rate hike the monthly bill would still be 18% lower than the national average.
Headquartered in Greensburg, Pennsylvania, Allegheny Energy is engaged in both regulated electricity and natural gas distribution utility operations as well as in the unregulated wholesale energy markets. The company operates through two business segments – the low margin Delivery & Services and the high margin Generation & Marketing. We maintain our market Neutral recommendation on the shares.
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