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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 4, 1999
ALLEGHENY ENERGY, INC.
(Exact name of registrant as specified in its charter)
Maryland 1-267 13-5531602
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) Number)
10435 Downsville Pike
Hagerstown, MD 21740
(Address of principal executive offices)
Registrant's telephone number,
including area code: (301) 790-3400
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Item 5. Other Events.
On March 4, 1999, the Board of Directors of Allegheny Energy, Inc.
approved a program to repurchase, from time to time, Allegheny
Energy, Inc's. common stock worth up to $500 million. A copy of
the press release dated March 5, 1999 is attached hereto as
Exhibit 99.1.
Item 7 Exhibits
Ex. 99.1 Press release dated March 5, 1999
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.
Allegheny Energy, Inc.
Dated: March 9, 1999 By: /s/ Thomas K. Henderson
Name: Thomas K. Henderson
Title: Vice President
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EXHIBIT INDEX
Item No. 7 Exhibits
Ex. 99.1 Press release dated March 5, 1999
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Exhibit 99.1
March 5, 1999
Allegheny Energy Announces Share Repurchase Program
Our Board of Directors yesterday approved the repurchase of
common stock worth up to $500 million. The Company expects to
begin repurchasing stock this month.
Allegheny Energy stock finished 1998 at 34-1/2, with the price
moving lower in January and February. The Company wants to
repurchase the shares while the price remains lower so that the
$500 million earmarked for the repurchase program can be used to
buy more shares. We plan to place the stock we acquire into our
corporate treasury.
"These levels provide an attractive opportunity for the
Company to begin a repurchase program as soon as possible, in
anticipation of the receipt, later this year, of proceeds from
transition bonds," according to Al Noia. "And, given our
strategy for future success as outlined in our Annual Report, it
makes sense to purchase Allegheny Energy common stock."
We believe that news of our stock buyback should be received
favorably on Wall Street. Stock repurchases often push stock
prices higher. That's because by reducing the number of shares of
stock outstanding, earnings are divided by a smaller number of
shares. And higher earnings per share typically correlate to
higher stock prices.
We plan to raise the $500 million for the repurchase program
as part of our Pennsylvania restructuring activities. Our
Pennsylvania subsidiary, West Penn Power, will issue about $670
million in transition bonds in July 1999 in accordance with its
1998 restructuring settlement. That settlement, approved by the
Pennsylvania Public Utility Commission, allows the Company to
recover $670 million in transition costs that may prove
unrecoverable in a competitive environment.
Because the Company wants to buy back our stock now while
prices are lower - instead of waiting until summer when we have
the money and share prices may have climbed - we may incur more
short-term indebtedness.
In addition to the repurchase of our common stock, we plan
to retire debt with a portion of the bond proceeds, which will
reduce interest-related costs.
