FirstEnergy-Allegheny Energy Merger Application Receives Approval From Virginia Regulators
FirstEnergy Corp. and Allegheny Energy, Inc. have received approval from the Virginia State Corporation Commission (SCC) for their proposed merger.
The companies filed a petition with the SCC for approval of their merger on June 4, 2010. Allegheny Energy owns transmission assets in Virginia through Potomac Edison and the Trans-Allegheny Interstate Line Company (TrAILCo). The SCC previously approved Allegheny Energy's sale of Potomac Edison's electric distribution service territory and facilities to Rappahannock Electric Cooperative and Shenandoah Valley Electric Cooperative. In the merger petition, the companies said the transaction would not negatively impact the service provided by Potomac Edison and TrAILCo.
The merger is expected to close in the first half of 2011, subject to customary closing conditions, including shareholder and regulatory approvals, as outlined in the joint proxy statement/prospectus mailed to shareholders.
The combination of FirstEnergy and Allegheny Energy is expected to provide enhanced earnings growth and shareholder return potential, and opportunities to create value through increased scale, scope and diversification.
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