FirstEnergy and Allegheny Energy Respond to PA Governor's Announcement
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AKRON, Ohio, Oct. 12 - FirstEnergy Corp. (NYSE: FE) and Allegheny Energy (NYSE: AYE) today issued the following statement in response to Pennsylvania Governor Ed Rendell's opposition to the companies' proposed merger:
"We respectfully disagree with Governor Rendell's position on our proposed merger.
The merger will create a stronger company, better positioned to deliver significant immediate and long-term benefits to the Commonwealth of Pennsylvania, including operating efficiencies that would result in better service reliability and prices for customers.
It is noteworthy that several groups concerned with jobs and economic growth in Pennsylvania have publicly supported the merger, including the International Brotherhood of Electrical Workers (IBEW), the Utility Workers Union of America (UWUA) and economic development and chambers of commerce groups, such as the Butler, Pa. County Economic Development Corp., Greater Johnstown-Cambria County Chamber of Commerce and the PA Economic Development Association.
The stronger company created by this merger provides the best opportunity for employment and economic growth in Pennsylvania. FirstEnergy has made certain commitments related to the utility workforce in Pennsylvania. The company also has delayed hiring in order to accommodate Allegheny Energy employees, and will look for ways to provide additional career opportunities.
In its merger application, FirstEnergy has committed to locate a regional headquarters in Greensburg, Pa., at the current headquarters building of Allegheny Energy. And, the company plans to work with local community colleges to establish a fourth Power Systems Institute (PSI) program in Pennsylvania. PSI is FirstEnergy's award-winning partnership to educate and train future utility workers.
Previous FirstEnergy mergers - including the 2001 transaction with another Pennsylvania company, GPU, Inc. - resulted in enhanced customer service reliability, improved safety and increased community support.
While we are disappointed that Governor Rendell does not recognize the many benefits of the FirstEnergy and Allegheny Energy merger, we will continue to work through the process to secure the needed regulatory approvals. The process remains on track. We are confident that the Pennsylvania Public Utility Commission (PaPUC) will look at the record of the case and base a decision on the merits. The merger already has been overwhelmingly supported by both companies' shareholders, and has been approved by the Virginia State Corporation Commission. We hope to receive support from the remaining commissions, including the PaPUC, so that the merger can be completed in the first half of 2011."
SOURCE FirstEnergy Corp.
CONTACT: FirstEnergy: For Investors: Ronald Seeholzer, +1-330-384-5415; For Media: Ellen Raines, +1-330-384-5808; Allegheny: For Investors: Max Kuniansky, +1-724-838-6895; For Media: David Neurohr, +1-724-838-6020
