The Public Service Commission of West Virginia (PSC) gave itsblessing yesterday to the proposed purchase of UtiliCorp United’s WestVirginia Power division by Allegheny Power, the energy deliverycompany of Allegheny Energy Inc. The $75 million purchase wasannounced last September (see Daily GPI, Sept. 10).Before completion, the Security and ExchangeCommission still must give its approval. Allegheny expects this to bedone later this month. The purchase has already received the go-aheadfrom the Federal Energy Regulatory Commission and the Federal TradeCommission.

The PSC’s positive decision was granted with the conditions thata six-year freeze of natural gas base rates and a three-year freezeon electric rates would be implemented. The commission alsorequired a reduction in rates in 2003 to rates now offered byMonongahela Power Co., an Allegheny Energy subsidiary doingbusiness in West Virginia as Allegheny Power.

“We are delighted that the PSC commissioners approved thistransaction in such an expedient manner. The purchase will meanrate benefits for the region’s electric and gas consumers.”

Once all approvals have been received, West Virginia Power willbegin doing business as Allegheny Power. As a result of thetransaction, Allegheny hopes to advance its high-level growthstrategy and increase shareholder value by adding 26,000 electricdistribution customers and 24,000 natural gas customers, thecompany said.

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