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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 26, 1998
WEST PENN POWER COMPANY
(Exact name of registrant as specified in its charter)
Pennsylvania 1-255-2 13-5480882
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) Number)
800 Cabin Hill Drive
Greensburg, Pennsylvania 15601
(Address of principal executive offices)
Registrant's telephone number,
including area code: (724) 837-3000
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Item 5. Other Events.
On March 25, 1998, the Pennsylvania Administrative
Law Judge (ALJ) issued a recommendation in West Penn
Power Company's restructuring case. The ALJ
recommended that West Penn's stranded cost recovery be
limited to 15% of the stranded costs sought by West
Penn. Attached is a copy of the press release issued
by Allegheny Energy, Inc., on March 26, 1998 concerning
the ALJ's decision in both the merger case and the
restructuring case.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this Report to be
signed on its behalf by the undersigned thereunto duly
authorized.
WEST PENN POWER COMPANY
Dated: April 2, 1998 By: /s/ Carol G. Russ
Name: Carol G. Russ
Title: Counsel
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Exhibit Index
Item No. 1 Ex. 1 Press release dated March 26, 1998
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Exhibit 1
Allegheny Energy Dismayed at Pennsylvania ALJs'
Recommendations on
Merger, Restructuring
Company is hopeful that final PUC decision will allow
consumers to benefit from merger
March 26, 1998, Hagerstown, Md.-Allegheny Energy today
expressed profound disappointment with the recommendations
of two Pennsylvania Administrative Law Judges (ALJs) who
recommended an 18-month delay of the proposed merger of the
Company and DQE, Inc. Also recommended was an 85 percent
reduction in the Company's claim for stranded cost recovery.
According to Allegheny Energy Senior Vice President and
Chief Financial Officer Michael P. Morrell, the Company is
carefully studying the ALJs' recommendations in preparation
for action by the Public Utility Commission (PUC).
"We strongly believe that the Allegheny Energy
restructuring case and the merger as proposed are in the
best interests not only of the Company, but consumers,
employees, and the state of Pennsylvania," Morrell said.
"We made a strong case, backed by analyses from a highly
respected economic analysis firm. The ALJs' recommendations
fail to recognize that this case and the merger mean lower
rates for consumers and a strong regional company that will
keep jobs in Pennsylvania."
Morrell added, "The Company is fully committed to the
merger. It is important to remember that the ALJs'
recommendations are only the first step in the process. We
are hopeful
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that the PUC will amend this decision so that the merger can
go forward and Pennsylvania can realize its benefits.
Yesterday's confirmation of the merger by the Maryland
Public Service Commission is more proof that this is indeed
the right step forward for our companies and the region.
"While we still need to study the documents in more
detail, it is clear that an 18-month delay would keep the
benefits of the merger from reaching our customers until the
year 2000, instead of this summer," said Morrell.
"Allegheny Energy is by far the lowest-cost provider of
electricity in Pennsylvania. In order to remain the lowest-
cost provider, we need to strengthen our Company through our
proposed merger with DQE."
Morrell added that the ALJ's recommendation on stranded
investment, the collection of which is clearly provided for
in the state's Electricity Generation Customer Choice and
Competition Act, provides for the collection of only 15
percent of the Company's costs.
"The amount provided for stranded investments is
completely inadequate and is financially unfair to the
Company and to its shareholders. The lowest-cost utility in
the state should not be punished for making investments that
maintain those low rates. We are confident that, when the
PUC reviews all of the information in this proceeding, its
members will appreciate the steps we have taken to keep
costs low for customers for many years, to maintain jobs in
western Pennsylvania, and to contribute to the economy of
the region. We will continue to stress our case to the PUC
as this process moves forward and believe that the
Commission, in its wisdom, will do the right thing for
Allegheny Energy's Pennsylvania operations, for the new
company, and for the consumers of Pennsylvania."
In April 1997, Allegheny Energy and DQE announced their
intent to merge. The new company will be the tenth largest
investor-owned utility in the nation, based on total
kilowatt-hour sales, and would serve nearly 2 million
customers in five states. The combination is expected to
produce savings of about $1 billion over a 10-year period
and create benefits for
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consumers. In addition to the approval required from the
PUC, the merger is also under review by the Federal Energy
Regulatory Commission, the Securities and Exchange
Commission, the Nuclear Regulatory Commission, the Federal
Trade Commission, and the Department of Justice.
Allegheny Energy is an investor-owned electric utility
providing approximately 41 billion kilowatt-hours of
electricity to 1.4 million customers in Maryland, Ohio,
Pennsylvania, West Virginia, and Virginia. Its electric
utility subsidiaries are now doing business as Allegheny
Power.
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