AKRON, Ohio and GREENSBURG, Pa., Sept. 10 - FirstEnergy Corp. (NYSE:FE) and Allegheny Energy, Inc. (NYSE:AYE) today announced that they have received approval from the Virginia State Corporation Commission (SCC) for their proposed merger.
"We are pleased to have the support of the SCC and view this as an important step in the completion of our merger," said Anthony J. Alexander, President and Chief Executive Officer of FirstEnergy.
"We appreciate the Commission's prompt approval. This merger will result in a stronger company that will better serve our many stakeholders, including those in Virginia," said Paul J. Evanson, Chairman, President and Chief Executive Officer of Allegheny Energy.
The companies filed a petition with the SCC for approval of their merger on June 4, 2010. Allegheny Energy owns transmission assets in Virginia through Potomac Edison and the Trans-Allegheny Interstate Line Company (TrAILCo). The SCC previously approved Allegheny Energy's sale of Potomac Edison's electric distribution service territory and facilities to Rappahannock Electric Cooperative and Shenandoah Valley Electric Cooperative. In the merger petition, the companies said the transaction would not negatively impact the service provided by Potomac Edison and TrAILCo.
The merger is expected to close in the first half of 2011, subject to customary closing conditions, including shareholder and regulatory approvals, as outlined in the joint proxy statement/prospectus mailed to shareholders.
The combination of FirstEnergy and Allegheny Energy is expected to provide enhanced earnings growth and shareholder return potential, and opportunities to create value through increased scale, scope and diversification.
Source: FirstEnergy Corp.
CONTACT: Investors: Ronald Seeholzer, +1-330-384-5415, or Media: Ellen Raines, +1-330-384-5808, both for FirstEnergy; or Investors: Max Kuniansky,
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Web Site: http://www.firstenergycorp.com/