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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): September 9,
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 September 9, 1999, Allegheny Energy, Inc.
(Allegheny) announced that it has agreed to purchase
the assets of West Virginia Power, a division of
UtiliCorp United Inc. for $75 million, subject to
necessary regulatory approvals. Allegheny also signed
a 20-year gas supply agreement with a UtiliCorp
subsidiary, Aquila Energy, to supply natural gas. In
addition, Allegheny agreed to purchase from UtiliCorp a
heating, ventilation and air conditioning installation
and service operation, Appalachian Electric Heating,
for $3.45 million. Attached as Exhibit 99.1 is a copy
of the press release.
Item 7 Exhibits
Ex. 99.1 Press release dated September 9, 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: September 10, 1999 By: /S/ T. 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 September 9, 1999
Exhibit 99.1
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Allegheny Energy, Inc. Agrees to Purchase UtiliCorp United's
West Virginia Power Division
Hagerstown, Md., September 9, 1999-Allegheny Energy, Inc.
(NYSE: AYE) today announced that its energy delivery company-with
regulated utilities doing business as Allegheny Power-has agreed
to purchase for $75 million the assets of West Virginia Power, a
division of UtiliCorp United Inc. (NYSE: UCU). The transaction,
which has been approved by both companies' Boards of Directors,
is expected to provide shareholder value, be accretive to
earnings in the first year, and strengthen Allegheny's long-
standing commitment to West Virginia.
"This is an important growth opportunity for Allegheny
Energy," according to Alan J. Noia, Chairman and Chief Executive
Officer of Allegheny Energy. "West Virginia Power's service
territory is an extension of our existing service territory in
the state, so we have a great deal of knowledge and experience in
serving customers in this region. We have a solid history of
providing reliable and high-quality customer service and look
forward to building upon improvements in this area which
UtiliCorp has been making. We couldn't ask for a better fit
strategically, and it just happens to be a great fit
geographically, as well."
"Allegheny is looking forward to providing our century of
experience serving customers well in West Virginia and our
excellence in customer service to these 50,000 new customers,"
said Jay S. Pifer, President of Allegheny Power. "We also expect
that this expertise will add to shareholder value by reducing
costs within the operation and expanding our customer base."
According to Pifer, this acquisition will allow Allegheny to
further advance its strategy of growing its energy delivery
business by adding 26,000 electric customers and 24,000 natural
gas customers, offering an opportunity to diversify the Company's
energy options and to gain experience in the gas distribution
business.
Allegheny also signed a 20-year gas supply agreement with a
UtiliCorp subsidiary, Aquila Energy, to supply natural gas. In
addition, Allegheny has agreed to purchase from UtiliCorp for
$3.45 million Appalachian Electric Heating, a heating,
ventilation, and air conditioning installation and service
operation with locations in West Virginia Power's service area.
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The purchase of the assets is conditioned upon the approvals
of the Public Service Commission of West Virginia, the Securities
and Exchange Commission, and the Department of Justice/Federal
Trade Commission. It is hoped that all required approvals will
be received and the transaction completed in the first quarter of
2000.
Allegheny Energy, Inc. is a diversified energy company
headquartered in Hagerstown, Md. The Allegheny Energy family
includes Allegheny Power, which delivers electric energy to about
three million people in parts of Maryland, Ohio, Pennsylvania,
Virginia, and West Virginia; Allegheny Energy Supply, which
operates and markets competitive retail and wholesale electric
generation and operates regulated electric generation for its
affiliates; and Allegheny Ventures, which actively invests in and
develops energy-related and telecommunications projects. For
more information, check our web site at www.alleghenyenergy.com.
Based in Kansas City, Missouri, UtiliCorp United is a
multinational energy company with $6.8 billion in assets and 12-
month sales of $14.9 billion. It serves more than 4.5 million
customers in the United States, Canada, and the United Kingdom,
and in New Zealand and Australia where it is the largest operator
of energy networks.
Certain statements above constitute forward-looking
statements with respect to Allegheny Energy, Inc. Such forward-
looking statements involve known and unknown risks,
uncertainties, and other factors that may cause the actual
results, performance, or achievements of Allegheny Energy to be
materially different from any future results, performance, or
achievements expressed or implied by such forward-looking
statements. Such factors may affect Allegheny Energy's
operations, markets, products, services, and prices. Such
factors include, among others, the following: general and
economic and business conditions; industry capacity; changes in
technology; changes in political, social, and economic
conditions; regulatory matters; integration of the operations of
Allegheny Energy; regulatory conditions applicable to the
transaction; the loss of any significant customers; and changes
in business strategy or business plans.
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