NEWS RELEASE
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Media contact: David Neurhor Director, External Communications Phone: (724) 838-6020 Media Hotline: 1-888-233-3583 | Investor contact: Max Kuniansky Executive Director, Investor Relations
and Corporate Communications Phone: (724) 838-6895 |
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Email: dneuroh@alleghenyenergy.com | E-mail: mkunian@alleghenyenergy.com |
FOR IMMEDIATE RELEASE
Allegheny Energy Signs Agreement to Settle Merrill Lynch Case
GREENSBURG, Pa., January 28, 2008—Allegheny Energy, Inc. (NYSE: AYE) today announced that it and Merrill Lynch & Co., Inc. have resolved litigation between the two parties. The case relates to a dispute regarding Allegheny’s purchase of Merrill’s Global Energy Market trading business in 2001.
Under the settlement agreement, Merrill will convey its minority equity interest in Allegheny Energy Supply Company, LLC to Allegheny. Allegheny will make a cash payment of $50 million to Merrill, and all litigation and claims associated with the case will be dismissed.
Allegheny Energy
Headquartered in Greensburg, Pa., Allegheny Energy is an investor-owned electric utility with total annual revenues of over $3 billion and more than 4,000 employees. The company owns and operates generating facilities and delivers low-cost, reliable electric service to over 1.5 million customers in Pennsylvania, West Virginia, Maryland and Virginia. For more information, visit the company’s Web site at www.alleghenyenergy.com.
Forward-Looking Statements
In addition to historical information, this release contains a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Words such as anticipate, expect, project, intend, plan, believe, and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. These include statements with respect to: regulation and the status of retail generation service supply competition in states served by Allegheny Energy’s distribution business, Allegheny Power; financing plans; demand for energy and the cost and availability of raw materials, including coal; provider-of-last-resort and power supply contracts; results of litigation; results of operations; internal controls and procedures; capital expenditures; status and condition of plants and equipment; regulatory matters; and accounting issues. Forward-looking statements involve estimates, expectations and projections and, as a result, are subject to risks and uncertainties. There can be no assurance that actual results will not materially differ from expectations. Actual results have varied materially and unpredictably from past expectations. Factors that could cause actual results to differ materially include, among others, the following: changes in the price of power and fuel for electric generation; general
economic and business conditions; changes in access to capital markets; complications or other factors that render it difficult or impossible to obtain necessary lender consents or regulatory authorizations on a timely basis; environmental regulations; the results of regulatory proceedings, including proceedings related to rates; changes in industry capacity, development and other activities by Allegheny Energy’s competitors; changes in the weather and other natural phenomena; changes in the underlying inputs and assumptions, including market conditions used to estimate the fair values of commodity contracts; changes in laws and regulations applicable to Allegheny Energy, its markets or its activities; the loss of any significant customers or suppliers; dependence on other electric transmission and gas transportation systems and their constraints or availability; changes in PJM, including changes to participant rules and tariffs; the effect of accounting policies issued periodically by accounting standard-setting bodies; and the continuing effects of global instability, terrorism and war. Additional risks and uncertainties are identified and discussed in Allegheny Energy’s reports filed with the Securities and Exchange Commission.
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