Financially troubled Allegheny Energy Inc. announced last Thursday that it sold two affiliates — Fellon-McCord & Associates and Alliance Energy Services LLC — to Constellation Energy Group for an estimated $22.3 million.

The acquisition of Alliance Energy and Fellon-McCord from Allegheny Energy, following the purchase of NewEnergy from AES Corp. in September, makes Baltimore, MD-based Constellation Energy the nation’s largest competitive supplier of energy to large commercial and industrial customers, according to Constellation CEO Mayo A. Shattuck III.

The transaction “significantly expands our large commercial and industrial business,” he said. The two companies combined serve 1,000 customer facilities in North America.

The sale of the two Louisville, KY-based businesses — Fellon-McCord, a natural gas and electricity consulting and management services firm, and Alliance Energy, a provider of gas supply and transportation services — are part of Allegheny Energy’s efforts to refocus its attention on its core power generation and transmission businesses, the Hagerstown, MD-based energy company said.

“We see this as yet as another step forward to get back to the basics,” noted Allegheny Energy spokesman Guy Fletcher.

As a result of the sale, he estimated Allegheny Energy has been freed of $60 million in contingent obligations and working capital requirements. This includes $54 million to meet Alliance Energy’s commitments to purchase gas for customers, and $6 million to satisfy the working capital needs of Alliance Energy. The sale was approved by Allegheny Energy’s board of directors.

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