Allegheny Power of Hagerstown, MD is closer to having 200,000new natural gas customers after getting a thumbs up from theSecurities and Exchange Commission yesterday to acquire MountaineerGas Co., West Virginia’s largest natural gas provider.

Allegheny Power, the energy delivery company of Allegheny EnergyInc., wants to grow its business with Mountaineer. The purchase ofMountaineer, a wholly owned subsidiary of Energy Corp. of America,would expand its service territory to more than 31,000 squaremiles, and grow its customer base to about 1.6 million customers.

“The SEC’s approval is great news because it completes theregulatory approval process and allows us to complete theacquisition,” said CEO Alan J. Noia. “Acquiring Mountaineer Gasrepresents an important step in the growth of our energy deliverybusiness.” In the past seven months, Noia said Allegheny Power hasgrown 15%, adding more than 250,000 customers — most from theMountaineer purchase. “This growth is another step in our businessstrategy to position Allegheny Energy as a leader in the region’senergy marketplace.”

The Mountaineer acquisition is Allegheny Power’s second in lessthan a year. In December 1999, the company acquired UtiliCorpUnited’s West Virginia Power subsidiary, which added 26,000electric and 24,000 natural gas customers.

The Public Service Commission of West Virginia, the FederalTrade Commission and the U.S. Department of Justice already haveapproved the acquisition. It is set to close before the end of thismonth.

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