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FOR IMMEDIATE RELEASE
Allegheny Energy Supply To Acquire Interest In
Conemaugh Generating Station For $76.25 Million
Greensburg, Pa., May 19, 2000 - Allegheny Energy, Inc.
(NYSE: AYE) today announced that its unregulated generation
company, Allegheny Energy Supply Company, LLC, and PPL Global,
Inc., a subsidiary of PPL Corp., have signed a definitive
agreement to purchase Potomac Electric Power Co. (Pepco)'s
interest in the Conemaugh generating station near Johnstown, Pa.,
located within the Pennsylvania-New Jersey-Maryland (PJM) market.
Pepco's interest represents 9.72 percent ownership of the 1,711-
megawatt (MW) plant or 166 MW.
The purchase price is $152.5 million, which Allegheny
Energy Supply and PPL Global will split. The acquisition will be
accounted for as a purchase and be accretive to Allegheny
Energy's earnings in the first full year. The purchase will be
financed through debt.
After the close of the transaction, Allegheny Energy will
have total generating capacity of nearly 10,000 MW. More than
4,100 MW of that capacity is currently owned by Allegheny Energy
Supply. This purchase will give Allegheny Energy Supply its first
generating asset within PJM.
"The purchase of Conemaugh is more than just an asset
acquisition for Allegheny Energy Supply," said Peter J. Skrgic,
President, Allegheny Energy Supply. "It provides us with an
entrance into the PJM market with a well-run, low-cost production
facility, and it is yet another step towards achieving our goal
of becoming a national energy supplier. Additionally, we are
pleased to partner with a quality organization like PPL in this
acquisition."
The completion of the transaction is subject to customary
conditions and approvals of various regulatory commissions,
including the Federal Energy Regulatory Commission, the Federal
Trade Commission/Department of Justice, and the Securities and
Exchange Commission. The companies anticipate that regulatory
approvals can be completed by the end of 2000.
Allegheny Energy Supply has made substantial progress towards
its goal of moving from its current status as a regional provider to
a national energy supplier. In 1999, Allegheny Energy Supply added 88
MW of generating capacity in Springdale, Pa., and recently announced
construction of another 540 MW there. Additionally, Allegheny Energy
Supply is installing 220 MW of natural-gas fired combustion turbine
generation at various sites throughout Pennsylvania.
Allegheny Energy Supply, an Allegheny Energy company, operates
and markets competitive retail and wholesale electric generation in
Pennsylvania and throughout competitive markets in the eastern United
States and operates regulated generation for its affiliates. For more
information about Allegheny Energy Supply, visit our website at
www.alleghenyenergysupply.com.
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