Coming a little more than a week after the company headed off bankruptcy, Hagerstown, MD-based Allegheny Energy, Inc. announced that Alan J. Noia, chairman, president, and CEO, has informed the board of directors of his decision to retire. Noia has agreed to remain with the company until a successor is found. The company said it is in the process of enlisting a prominent executive search firm to head the search.

In late February, Allegheny Energy and its Allegheny Energy Supply Co. entered into agreements with lenders on new and restructured credit facilities totaling $2.4 billion, allowing investors to breathe a little easier (see NGI, March 3). The company noted that proceeds from the financing will be used to refinance existing debt and for general corporate purposes. The receipt of new and restructured credit facilities effectively removed the cloud of possible bankruptcy that had been hanging over the power company in recent months.

Also last week, Allegheny Energy asked a state Superior Court in Sacramento to dismiss a California Department of Water Resources (DWR) lawsuit brought earlier this year that intends to terminate the company’s $4.4 billion power supply deal. The contract, the fourth largest in the state’s original portfolio of long-term deals, is one of many the state is trying to renegotiate or cancel.

“Over the past year, we have made significant strides in refocusing on our core businesses and addressing the challenges facing the industry and our company, positioning us to deliver value to our shareholders,” Noia said. “Having recently successfully refinanced our credit facilities, it is the right time for me to retire. I am confident that the company will continue to successfully and reliably serve its customers.”

Noia began his career with the company in 1966 as a summer intern working as a member of a survey crew for one of the company’s subsidiaries, The Potomac Edison Co. Noia was named chairman, president, and CEO in 1996.

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