AKRON, Ohio, Feb. 25, 2011 /PRNewswire/ -- FirstEnergy Corp.
(NYSE: FE) announced that its merger with Allegheny Energy, Inc.
(NYSE: AYE), has closed, effective today, marking the beginning of
combined operations. This follows the company's acceptance of
conditions included in yesterday's Pennsylvania Public Utility
Commission approval.
"We are pleased to have completed our merger and look forward to
delivering to our customers, shareholders and employees the
significant benefits of a larger, stronger company," said President
and Chief Executive Officer Anthony J.
Alexander.
The company also announced that it will locate regional
headquarters for Maryland and
West Virginia utility operations
in Washington County, Md., and
Fairmont, W.Va., respectively.
The current headquarters building for Allegheny Energy in
Greensburg, Pa., will become the
regional headquarters for West Penn Power utility operations.
These moves underscore the company's focus on regional
operations. In addition, the company plans to reintroduce the
utility operating names – Mon Power, Potomac Edison and West Penn
Power – to Allegheny Power customers.
The regional headquarters for Potomac Edison's Maryland operations will be located in
Allegheny Power's existing central distribution center in
Washington County. This
facility was chosen because it is centrally located, can
accommodate the Potomac Edison management organization and is
already equipped with the company's information technology
infrastructure, a significant cost savings. Newly appointed
president of Maryland Operations, James V.
Fakult, and his staff will operate from there.
West Virginia regional
headquarters will be located in the newly constructed transmission
operations center in Fairmont.
This facility was designed to accommodate additional
functions, is conveniently located near other company facilities
including the Fairmont Call Center, and has updated information
technology infrastructure. James R. Haney, president of West
Virginia Operations, and his staff will be located there.
West Penn Power, Allegheny Energy's Pennsylvania utility company, will remain
headquartered in Greensburg, and
regional president, David W.
McDonald, and his staff will be located there.
FirstEnergy, which has its corporate headquarters in
Akron, Ohio, currently has
regional utility headquarters in Akron, Cleveland and Toledo, Ohio; Erie and Reading,
Pa.; and Morristown,
N.J.
In accordance with the dividend synchronization plan announced
in December, FirstEnergy shareholders of record as of February 7, 2011, will receive a pro rata
dividend of $0.5255 per share,
payable March 1, 2011. In
addition, FirstEnergy shareholders of record as of the close of
business February 25, 2011, will
receive a pro rata dividend of $0.0245 per share, payable March 7, 2011. Allegheny Energy
shareholders as of the close of business on February 24, 2011, will receive a prorated final
dividend of $0.12045 per share,
payable March 11, 2011.
FirstEnergy is a diversified energy company dedicated to safety,
reliability and operational excellence. Its ten electric
distribution companies comprise the nation's largest investor-owned
electric system. Its diverse generating fleet features
non-emitting nuclear, scrubbed baseload coal, natural gas, and
pumped-storage hydro and other renewables, and has a total
generating capacity of approximately 23,000 megawatts.
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 the various states in which we do business (including,
but not limited to, proceedings related to rates and matters with
respect to the Trans-Allegheny Interstate Line and
Potomac-Appalachian Transmission Highline projects), 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,
operation and maintenance costs being higher than anticipated,
other legislative and regulatory changes, and revised environmental
requirements, including possible greenhouse gas emission and coal
combustion residual 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 complete, among other things, the
Trans-Allegheny Interstate Line and Potomac-Appalachian
Transmission Highline projects, the uncertainty of the timing and
amounts of the capital expenditures needed to, resolve any New
Source Review litigation or other potential similar regulatory
initiatives or rulemakings (including that such expenditures could
result in our decision to shut down or idle certain generating
units), 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), adverse legal decisions and outcomes
related to 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 and energy efficiency mandates, changes in customers'
demand for power, including but not limited to, changes resulting
from the implementation of state and federal energy efficiency
mandates, 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 FirstEnergy to make additional contributions sooner, or in
amounts that are 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 and increase its requirements to post
additional collateral to support outstanding commodity positions,
letters of credit and other financial guarantees, the continuing
uncertainty of 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, issues arising
from the recently completed merger of FirstEnergy and Allegheny
Energy, Inc. and the ongoing coordination of their combined
operations including FirstEnergy's 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 FirstEnergy's 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. The Registrant 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.