AKRON, Ohio, Feb. 15, 2011 /PRNewswire/ -- The Board of
Directors of FirstEnergy Corp. (NYSE: FE) today declared an
unchanged quarterly dividend of 55
cents per share of outstanding common stock for the second
quarter of 2011.
In addition, the Board provided updated contingent scenarios to
synchronize the payments of the FirstEnergy and Allegheny Energy,
Inc. (NYSE: AYE), dividends as of the effective date of the
companies' proposed merger. These scenarios are similar to
the plan announced in December for payment of the first quarter
2011 dividend.
If the merger is not completed before the payment date of
June 1, 2011, the full 55 cent-per-share second quarter dividend would
be payable on June 1, 2011, to
shareholders of record at the close of business on May 6, 2011.
If the merger is completed before June 1,
2011, FirstEnergy will pay two separate dividends that will
total 55 cents per share. The
timing and amount of these payments depend on the merger effective
date.
If the effective date of the merger is on or after May 6, 2011, and before June 1, 2011:
- FirstEnergy would pay a dividend of 0.598 cents per share per day for the period from
and including March 1, 2011, through
the day before the merger effective date, to shareholders of record
as of May 6, 2011 (or May 5, 2011 if the merger is effective on
May 6). This dividend would be
payable on June 1, 2011.
- A second pro rata dividend of 0.598
cents per share per day would be payable to shareholders of
record at the close of business on the merger effective date, for
the period from and including the effective date, through
May 31, 2011. The second
dividend would be payable within 30 days following the effective
date of the merger.
If the effective date of the merger is on or after March 1, 2011, and before May 6, 2011:
- FirstEnergy would pay a dividend of 0.598 cents per share per day for the period from
and including March 1, 2011, through
the day before the merger effective date, to shareholders of record
at the close of business on the day prior to the merger effective
date. This dividend would be payable within 30 days following
the effective date of the merger.
- A second pro rata dividend of 0.598
cents per share per day would be payable to shareholders of
record at the close of business on May 6,
2011, for the period from and including the effective date
through May 31, 2011. The
second dividend would be payable on June 1,
2011.
The plan for payment of the first quarter 2011 dividend remains
unchanged. If the merger becomes effective before
March 1, that dividend will be paid
to qualified shareholders as two payments totaling 55 cents per share. If the merger becomes
effective on or after March 1, the
first quarter 2011 dividend will be paid as a single payment of
55 cents per share.
Forward-Looking Statements: This news release includes
forward-looking statements based on information currently available
to management. Such statements are subject to certain risks and
uncertainties. These statements include declarations regarding
management's intents, beliefs and current expectations. These
statements typically contain, but are not limited to, the terms
"anticipate," "potential," "expect," "believe," "estimate" and
similar words. Forward-looking statements involve estimates,
assumptions, known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Actual results may differ materially due to the speed
and nature of increased competition in the electric utility
industry, the impact of the regulatory process on the pending
matters in Ohio, Pennsylvania and New
Jersey, business and regulatory impacts from American
Transmission Systems, Incorporated's realignment into PJM
Interconnection, L.L.C., economic or weather conditions affecting
future sales and margins, changes in markets for energy services,
changing energy and commodity market prices and availability,
financial derivative reforms that could increase our liquidity
needs and collateral costs, replacement power costs being higher
than anticipated or inadequately hedged, the continued ability of
FirstEnergy's regulated utilities to collect transition and other
costs, operating and maintenance costs being higher than
anticipated, other legislative and regulatory changes, revised
environmental requirements, including possible greenhouse gas
emission and coal combustion regulations, the potential impacts of
any laws, rules or regulations that ultimately replace the Clean
Air Interstate Rules, the uncertainty of the timing and amounts of
the capital expenditures needed to, among other things, resolve any
NSR litigation or other potential similar regulatory initiatives or
rulemakings (including that such amounts could be higher than
anticipated or that certain generating units may need to be shut
down), adverse regulatory or legal decisions and outcomes
(including, but not limited to, the revocation of necessary
licenses or operating permits and oversight) by the Nuclear
Regulatory Commission, Metropolitan Edison Company's and
Pennsylvania Electric Company's transmission service charge appeal
at the Commonwealth Court of Pennsylvania, any impact resulting from the
receipt by Signal Peak of the Department of Labor's notice of a
potential pattern of violations at Bull Mountain Mine No. 1, the
continuing availability of generating units and their ability to
operate at or near full capacity, the ability to comply with
applicable state and federal reliability standards, the ability to
accomplish or realize anticipated benefits from strategic goals
(including employee workforce initiatives), the ability to improve
electric commodity margins and the impact of, among other factors,
the increased cost of coal and coal transportation on such margins
and the ability to experience growth in the distribution business,
the changing market conditions that could affect the value of
assets held in FirstEnergy's nuclear decommissioning trusts,
pension trusts and other trust funds, and cause it to make
additional contributions sooner, or in an amount that is larger
than currently anticipated, the ability to access the public
securities and other capital and credit markets in accordance with
FirstEnergy's financing plan and the cost of such capital, changes
in general economic conditions affecting the company, the state of
the capital and credit markets affecting the company, interest
rates and any actions taken by credit rating agencies that could
negatively affect FirstEnergy's access to financing or its costs or
increase its requirements to post additional collateral to support
outstanding commodity positions, letters of credit and other
financial guarantees, the continuing uncertainty in the national
and regional economy and its impact on the company's major
industrial and commercial customers, issues concerning the
soundness of financial institutions and counterparties with which
FirstEnergy does business, the expected timing and likelihood of
completion of the proposed merger with Allegheny Energy, Inc.,
including the timing, receipt and terms and conditions of any
required governmental and regulatory approvals of the proposed
merger that could reduce anticipated benefits or cause the parties
to abandon the merger, the diversion of management's time and
attention from our ongoing business during this time period, the
ability to maintain relationships with customers, employees or
suppliers as well as the ability to successfully integrate the
businesses and realize cost savings and any other synergies and the
risk that the credit ratings of the combined company or its
subsidiaries may be different from what the companies expect and
the risks and other factors discussed from time to time in its
Securities and Exchange Commission filings, and other similar
factors. Dividends declared from time to time on FirstEnergy's
common stock during any annual period may in aggregate vary from
the indicated amount due to circumstances considered by
FirstEnergy's Board of Directors at the time of the actual
declarations. The foregoing review of factors should not be
construed as exhaustive. New factors emerge from time to
time, and it is not possible for management to predict all such
factors, nor assess the impact of any such factor on FirstEnergy's
business or the extent to which any factor, or combination of
factors, may cause results to differ materially from those
contained in any forward-looking statements. FirstEnergy expressly
disclaims any current intention to update any forward-looking
statements contained herein as a result of new information, future
events, or otherwise.
SOURCE FirstEnergy Corp.