The Maryland Public Service Commission (PSC) has given a greenlight to the July 1 transfer of 1,300 MW of Allegheny Energy Inc.’sPotomac Edison generating assets to its non-regulated energy supplyaffiliate. The transfer of the generating assets to AlleghenyEnergy Supply Co. LLC will give it more than 5,400 MW of low-costgenerating capacity to sell in the deregulated marketplace.

“The decision by the PSC is yet another step in the growth ofour portfolio of non-regulated generation,” said Peter J. Skrgic,president of Allegheny Energy Supply.

The move is expected to advance Hagerstown, MD-based AlleghenyEnergy Supply’s plans to become a national energy supplier (see DailyGPI, Dec. 21, 1999). The company added88 MW of generating capacity in Springdale, PA, and it recentlyannounced construction of another 540 MW at the site. It also haspurchased 83 MW of coal-fired generation at Conemaugh GeneratingStation near Johnstown, PA, and is now in the process of installing220 MW of natural gas-fired combustion turbine generation at sitesacross Pennsylvania this year.

Skrgic said he expects approvals of the Maryland generatingassets transfer from FERC and the Securities and ExchangeCommission later this month. The company also is waiting for stateregulatory decisions on the transfer of an additional 775 MW of theVirginal and West Virginia jurisdictional assets of the PotomacEdison subsidiary to Allegheny Energy Supply later this year.

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