FirstEnergy Corp. and Allegheny Energy, Inc., along with all parties to their merger proceeding in West Virginia, filed a comprehensive settlement with the West Virginia Public Service Commission that resolves all issues raised in the case. The filing includes a commitment for a regional headquarters for Allegheny Power’s West Virginia utility operations, a $7.5 million rate reduction over two years for Allegheny Power’s West Virginia customers, enhanced customer service and reliability, and expanded support for Dollar Energy Fund.

In addition to the commitments made in the initial merger application, the settlement includes the following:

• A regional headquarters operation for Allegheny Power’s West Virginia utility operations within the service territory of Monongahela Power.
• $7.5 million in rate reductions over a two-year period for Allegheny Power’s West Virginia customers.
• Customer service as well as reliability commitments aimed at reducing the duration of outages.
• A commitment to maintain customer call center operations in Fairmont for at least five years.
• Additional funding totaling $500,000 over a four-year period for Dollar Energy Fund in West Virginia.
• Specific demand-side management and energy efficiency savings levels in Allegheny Power’s West Virginia service territories.

Parties signing the petition include Staff of the WVPSC, the West Virginia Consumer Advocate Division, West Virginia Energy Users Group, the Utility Workers of America, AFL-CIO and UWUA System Local 102-O, West Virginia Citizen Action Group, Local Union 2357 and Local Union 50 of the International Brotherhood of Electrical Workers, the West Virginia State Building and Construction Trades Council, and the Marion County Commission.

The petition, which resolves all issues raised by these parties in the FirstEnergy-Allegheny Energy merger case, is subject to approval of the WVPSC.

The companies filed their merger application with the WVPSC on May 18, 2010. In it they committed to no net job losses at the utility operating companies for at least two years as a result of involuntary attrition related to the integration process; to expand FirstEnergy’s Power Systems Institute program in West Virginia; to maintain Allegheny Power’s customer call center and transmission operations center in Fairmont; and continued economic development and community support.