| Statement Of Income Alternative (USD $) | ||||
| In Thousands, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Operating revenues | $814,743 | $953,500 | $1,771,916 | $1,828,526 |
| Operating expenses: | ||||
| Fuel | 216,766 | 245,252 | 475,727 | 495,078 |
| Purchased power and transmission | 112,227 | 97,207 | 246,122 | 194,587 |
| Deferred energy costs, net | (7,574) | 1,103 | (24,582) | (9,351) |
| Operations and maintenance | 200,519 | 189,931 | 367,694 | 358,631 |
| Depreciation and amortization | 67,221 | 68,794 | 135,732 | 139,083 |
| Taxes other than income taxes | 46,509 | 52,879 | 102,323 | 105,318 |
| Total operating expenses | 635,668 | 655,166 | 1,303,016 | 1,283,346 |
| Operating income | 179,075 | 298,334 | 468,900 | 545,180 |
| Other income (expense), net | 1,758 | 4,661 | 4,217 | 10,870 |
| Interest expense | 59,070 | 58,704 | 116,350 | 117,135 |
| Income before income taxes | 121,763 | 244,291 | 356,767 | 438,915 |
| Income tax expense | 48,900 | 89,820 | 149,806 | 148,113 |
| Net income | 72,863 | 154,471 | 206,961 | 290,802 |
| Less net income attributable to noncontrolling interest | (255) | (345) | (428) | (551) |
| Net income attributable to Allegheny Energy, Inc. | $72,608 | $154,126 | $206,533 | $290,251 |
| Earnings per share attributable to Allegheny Energy, Inc.: | ||||
| Basic | 0.43 | 0.92 | 1.22 | 1.73 |
| Diluted | 0.43 | 0.91 | 1.22 | 1.71 |
| Average shares outstanding: | ||||
| Basic | 169,506 | 168,236 | 169,473 | 167,898 |
| Diluted | 169,908 | 170,106 | 169,888 | 170,028 |
| Dividends per share | 0.15 | 0.15 | 0.3 | 0.3 |
| Statement Of Cash Flows Indirect (USD $) | ||
| In Thousands | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Cash Flows From Operating Activities: | ||
| Net income | $206,961 | $290,802 |
| Adjustments for non-cash items included in income: | ||
| Depreciation and amortization | 135,732 | 139,083 |
| Amortization of debt related costs | 5,584 | 5,439 |
| Amortization of liability for adverse power purchase commitment | (8,734) | (8,568) |
| Amortization of Pennsylvania stranded costs | 0 | 8,068 |
| Provision for uncollectible accounts | 7,184 | 10,475 |
| Deferred income taxes and investment tax credit, net | 135,833 | 121,763 |
| Deferred energy costs, net | (24,582) | (9,351) |
| Stock-based compensation expense | 8,588 | 6,353 |
| Unrealized gains on derivative contracts, net | (35,622) | (154,603) |
| Pension and other postretirement employee benefit plan expense | 20,137 | 15,825 |
| Pension and other postretirement employee benefit plan contributions | (4,187) | (42,039) |
| Deferred revenue - Fort Martin scrubber project | 4,805 | 7,653 |
| Deferred revenue - Virginia | (28,333) | 0 |
| Uncollected transmission revenue | (7,210) | (10,234) |
| Other, net | 4,183 | 8,893 |
| Changes in certain assets and liabilities: | ||
| Accounts receivable, net | (26,590) | (65,812) |
| Materials, supplies and fuel | (75,215) | (44,918) |
| Prepaid taxes | (11,621) | (6,339) |
| Collateral deposits | (655) | 29,082 |
| Accounts payable | (12,658) | 99 |
| Accrued taxes | (66,096) | (11,455) |
| Accrued interest | (1,500) | (8,352) |
| Regulatory assets | 32,972 | 4,618 |
| Deferred income taxes | (22,521) | (1,452) |
| Regulatory liabilities | (6,032) | 27,890 |
| Distributions from equity method investee | 1,275 | 0 |
| Assets and liabilities held for sale | 3,042 | 0 |
| Other operating assets and liabilities | 6,253 | 1,217 |
| Net cash provided by operating activities | 240,993 | 314,137 |
| Cash Flows From Investing Activities: | ||
| Capital expenditures | (550,230) | (478,391) |
| Proceeds from asset sales | 200 | 400 |
| Purchase of Merrill Lynch interest in subsidiary | 0 | (50,000) |
| Decrease in restricted funds | 104,633 | 58,250 |
| Other investments | (1,442) | (1,474) |
| Net cash used in investing activities | (446,839) | (471,215) |
| Cash Flows From Financing Activities: | ||
| Issuance of long-term debt | 277,084 | 249,148 |
| Repayment of long-term debt | (167,332) | (196,624) |
| Equity contribution to PATH, LLC by the joint venture partner | 470 | 4,460 |
| Distribution on behalf of noncontrolling interest | (249) | 0 |
| Payments on capital lease obligations | (4,361) | (4,371) |
| Share-based excess tax benefits | 19,732 | 0 |
| Proceeds from exercise of employee stock options | 1,225 | 16,748 |
| Cash dividends paid on common stock | (50,830) | (50,413) |
| Net cash provided by financing activities | 75,739 | 18,948 |
| Net decrease in cash and cash equivalents | (130,107) | (138,130) |
| Cash and cash equivalents at beginning of period | 362,145 | 258,750 |
| Cash and cash equivalents at end of period | 232,038 | 120,620 |
| Supplemental Cash Flows Information: | ||
| Cash paid during the period for interest (net of amounts capitalized) | 111,984 | 119,848 |
| Accounts payable at June 30 relating to capital expenditures | $96,676 | $73,204 |
| Statement Of Financial Position Classified (USD $) | ||
| In Thousands | Jun. 30, 2009
| Dec. 31, 2008
|
| Current Assets: | ||
| Cash and cash equivalents | $232,038 | $362,145 |
| Accounts receivable: | ||
| Customer | 201,044 | 188,309 |
| Unbilled utility revenue | 88,135 | 122,695 |
| Wholesale and other | 71,357 | 61,445 |
| Allowance for uncollectible accounts | (13,870) | (13,280) |
| Materials and supplies | 111,794 | 115,107 |
| Fuel | 206,561 | 128,238 |
| Deferred income taxes | 46,026 | 69,617 |
| Prepaid taxes | 56,387 | 44,766 |
| Collateral deposits | 49,349 | 33,441 |
| Derivative assets | 108,415 | 113,087 |
| Regulatory assets | 146,759 | 158,835 |
| Assets held for sale | 30,144 | 0 |
| Other | 70,011 | 111,317 |
| Total current assets | 1,404,150 | 1,495,722 |
| Property, Plant and Equipment: | ||
| Generation | 6,621,037 | 6,107,344 |
| Transmission | 1,222,881 | 1,171,716 |
| Distribution | 3,693,298 | 3,944,068 |
| Other | 462,692 | 463,377 |
| Accumulated depreciation | (4,995,338) | (4,994,099) |
| Subtotal | 7,004,570 | 6,692,406 |
| Construction work in progress | 1,202,030 | 1,309,790 |
| Property, plant and equipment held for sale, net | 249,065 | 0 |
| Total property, plant and equipment, net | 8,455,665 | 8,002,196 |
| Investments and Other Assets: | ||
| Goodwill | 367,287 | 367,287 |
| Restricted funds-Fort Martin scrubber project | 33,642 | 133,346 |
| Investments in unconsolidated affiliates | 27,132 | 27,955 |
| Other | 21,221 | 19,695 |
| Total investments and other assets | 449,282 | 548,283 |
| Deferred Charges: | ||
| Regulatory assets | 668,277 | 687,696 |
| Derivative assets | 5,691 | 9,816 |
| Assets held for sale | 52 | 0 |
| Other | 64,587 | 67,335 |
| Total deferred charges | 738,607 | 764,847 |
| Total Assets | 11,047,704 | 10,811,048 |
| Current Liabilities: | ||
| Long-term debt due within one year | 179,669 | 93,848 |
| Accounts payable | 378,998 | 374,229 |
| Accrued taxes | 48,253 | 119,431 |
| Payable to PJM for FTRs | 34,433 | 110,774 |
| Derivative liabilities | 14,409 | 22,153 |
| Regulatory liabilities | 45,143 | 69,208 |
| Accrued interest | 56,531 | 58,048 |
| Security deposits | 46,676 | 46,166 |
| Liabilities associated with assets held for sale | 12,724 | 0 |
| Other | 107,086 | 109,643 |
| Total current liabilities | 923,922 | 1,003,500 |
| Long-term Debt, excluding amounts due within one year | 4,143,539 | 4,115,921 |
| Deferred Credits and Other Liabilities: | ||
| Derivative liabilities | 9,228 | 11,886 |
| Income taxes payable | 81,759 | 75,669 |
| Investment tax credit | 63,679 | 65,768 |
| Deferred income taxes | 1,370,602 | 1,277,439 |
| Regulatory liabilities | 474,185 | 528,937 |
| Pension and other postretirement employee benefit plan liabilities | 591,483 | 578,440 |
| Adverse power purchase commitment | 123,379 | 132,334 |
| Liabilities associated with assets held for sale | 54,137 | 0 |
| Other | 160,536 | 165,500 |
| Total deferred credits and other liabilities | 2,928,988 | 2,835,973 |
| Commitments and Contingencies (Note 15) | 0 | 0 |
| Equity: | ||
| Common stock-$1.25 par value per share, 260 million shares authorized and 169,532,084 and 169,413,887 shares issued at June 30, 2009 and December 31, 2008, respectively | 211,893 | 211,767 |
| Other paid-in capital | 1,981,875 | 1,952,440 |
| Retained earnings | 887,298 | 731,615 |
| Treasury stock at cost-49,493 shares | (1,756) | (1,756) |
| Accumulated other comprehensive loss | (33,610) | (43,318) |
| Total Allegheny Energy, Inc. common stockholders' equity | 3,045,700 | 2,850,748 |
| Noncontrolling interest | 5,555 | 4,906 |
| Total equity | 3,051,255 | 2,855,654 |
| Total Liabilities and Equity | $11,047,704 | $10,811,048 |
| Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
| Jun. 30, 2009
| Dec. 31, 2008
| |
| Common stock, par value | 1.25 | 1.25 |
| Common stock, shares authorized | 260,000,000 | 260,000,000 |
| Common stock, shares issued | 169,532,084 | 169,413,887 |
| Treasury stock at cost, shares | 49,493 | 49,493 |
| Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | |||||||||
| In Thousands, except Share data | Common stock
| Other paid-in capital
| Retained earnings
| Treasury stock
| Accumulated other comprehensive loss
| Energy, Inc. common stockholders' equity
| Energy, Inc. common Noncontrolling interest
| Total
| |
| Beginning Balance at Dec. 31, 2007 | $209,091 | $1,924,072 | $444,177 | ($1,756) | ($40,232) | $2,535,352 | $13,241 | $2,548,593 | |
| Beginning Balance at Dec. 31, 2007 | 167,223,576 | ||||||||
| Net income | 290,251 | 290,251 | 551 | 290,802 | |||||
| Defined benefit pension and other benefit plan amortization, net of tax of $555 in 3 months ended June 30th ,2009, $1,126 in 6 months ended June 30th, 2009, $287 in 3 months ended June 30th, 2008 and $621 in 6 months ended June 30th, 2008 | 702 | 702 | 702 | ||||||
| Cash flow hedges, net of tax of $8,462 in 3 months ended June 30th, 2009, $4,868 in 6 months ended June 30th, 2009, $19,785 in 3 months ended June 30th, 2008 and $44,171 6 months ended June 30th 2008 | (69,917) | (69,917) | (69,917) | ||||||
| Unrealized losses on available-for-sale securities, net of tax of $1 in 3 months ended June 30th, 2008 and $1 in 6 months ended June 30th, 2008 | (1) | (1) | (1) | ||||||
| Purchase of minority interest in AE Supply | (13,238) | (13,238) | |||||||
| Equity contribution to PATH, LLC by the joint venture partner | 4,460 | 4,460 | |||||||
| Dividends on common stock | (50,413) | (50,413) | (50,413) | ||||||
| Stock-based compensation expense: | |||||||||
| Stock units | 609 | 609 | 609 | ||||||
| Non-employee director stock awards | 17,465 | ||||||||
| Non-employee director stock awards | 22 | 534 | (16) | 540 | 540 | ||||
| Stock options | 4,809 | 4,809 | 4,809 | ||||||
| Performance shares | 392 | 392 | 392 | ||||||
| Exercise of stock options | 1,219,130 | ||||||||
| Exercise of stock options | 1,524 | 15,224 | 16,748 | 16,748 | |||||
| Settlement of stock units | 249,082 | ||||||||
| Settlement of stock units | 311 | (8,003) | (7,692) | (7,692) | |||||
| Dividends on stock units | 74 | (74) | 0 | ||||||
| Ending Balance at Jun. 30, 2008 | 168,709,253 | ||||||||
| Ending Balance at Jun. 30, 2008 | 210,948 | 1,937,711 | 683,925 | (1,756) | (109,448) | 2,721,380 | 5,014 | 2,726,394 | |
| Beginning Balance at Mar. 31, 2008 | 209,870 | 1,934,346 | 555,065 | (1,756) | (78,748) | 2,618,777 | 3,279 | 2,622,056 | |
| Beginning Balance at Mar. 31, 2008 | 167,846,799 | ||||||||
| Net income | 154,126 | 154,126 | 345 | 154,471 | |||||
| Defined benefit pension and other benefit plan amortization, net of tax of $555 in 3 months ended June 30th ,2009, $1,126 in 6 months ended June 30th, 2009, $287 in 3 months ended June 30th, 2008 and $621 in 6 months ended June 30th, 2008 | 375 | 375 | 375 | ||||||
| Cash flow hedges, net of tax of $8,462 in 3 months ended June 30th, 2009, $4,868 in 6 months ended June 30th, 2009, $19,785 in 3 months ended June 30th, 2008 and $44,171 6 months ended June 30th 2008 | (31,075) | (31,075) | (31,075) | ||||||
| Unrealized losses on available-for-sale securities, net of tax of $1 in 3 months ended June 30th, 2008 and $1 in 6 months ended June 30th, 2008 | (1) | (1) | (1) | ||||||
| Equity contribution to PATH, LLC by the joint venture partner | 1,390 | 1,390 | |||||||
| Dividends on common stock | (25,252) | (25,252) | (25,252) | ||||||
| Stock-based compensation expense: | |||||||||
| Stock units | 267 | 267 | 267 | ||||||
| Non-employee director stock awards | 1,198 | ||||||||
| Non-employee director stock awards | 2 | 277 | (8) | 271 | 271 | ||||
| Stock options | 2,699 | 2,699 | 2,699 | ||||||
| Performance shares | 392 | 392 | 392 | ||||||
| Exercise of stock options | 612,228 | ||||||||
| Exercise of stock options | 765 | 7,727 | 8,492 | 8,492 | |||||
| Settlement of stock units | 249,028 | ||||||||
| Settlement of stock units | 311 | (8,003) | (7,692) | (7,692) | |||||
| Dividends on stock units | 6 | (6) | 0 | ||||||
| Other | 1 | 1 | 1 | ||||||
| Ending Balance at Jun. 30, 2008 | (1,756) | ||||||||
| Beginning Balance at Dec. 31, 2008 | 211,767 | 1,952,440 | 731,615 | (1,756) | (43,318) | 2,850,748 | 4,906 | 2,855,654 | |
| Beginning Balance at Dec. 31, 2008 | 169,364,394 | ||||||||
| Net income | 206,533 | 206,533 | 428 | 206,961 | |||||
| Defined benefit pension and other benefit plan amortization, net of tax of $555 in 3 months ended June 30th ,2009, $1,126 in 6 months ended June 30th, 2009, $287 in 3 months ended June 30th, 2008 and $621 in 6 months ended June 30th, 2008 | 1,702 | 1,702 | 1,702 | ||||||
| Cash flow hedges, net of tax of $8,462 in 3 months ended June 30th, 2009, $4,868 in 6 months ended June 30th, 2009, $19,785 in 3 months ended June 30th, 2008 and $44,171 6 months ended June 30th 2008 | 8,006 | 8,006 | 8,006 | ||||||
| Distribution on behalf of noncontrolling interest | (249) | (249) | |||||||
| Equity contribution to PATH, LLC by the joint venture partner | 470 | 470 | |||||||
| Dividends on common stock | (50,830) | (50,830) | (50,830) | ||||||
| Stock-based compensation expense: | |||||||||
| Stock units | 8 | 8 | 8 | ||||||
| Non-employee director stock awards | 15,907 | ||||||||
| Non-employee director stock awards | 20 | 438 | (18) | 440 | 440 | ||||
| Stock options | 3,979 | 3,979 | 3,979 | ||||||
| Performance shares | 4,110 | 4,110 | 4,110 | ||||||
| Restricted shares | 17,850 | ||||||||
| Restricted shares | 47 | 47 | 47 | ||||||
| Exercise of stock options | 84,440 | ||||||||
| Exercise of stock options | 106 | 1,119 | 1,225 | 1,225 | |||||
| Dividends on stock units | 2 | (2) | 0 | ||||||
| Share-based excess tax benefits | 19,732 | 19,732 | 19,732 | ||||||
| Ending Balance at Jun. 30, 2009 | 169,482,591 | ||||||||
| Ending Balance at Jun. 30, 2009 | 211,893 | 1,981,875 | 887,298 | (1,756) | (33,610) | 3,045,700 | 5,555 | 3,051,255 | |
| Beginning Balance at Mar. 31, 2009 | 211,788 | 1,975,996 | 840,122 | (1,756) | (21,424) | 3,004,726 | 5,078 | 3,009,804 | |
| Beginning Balance at Mar. 31, 2009 | 169,399,045 | ||||||||
| Net income | 72,608 | 72,608 | 255 | 72,863 | |||||
| Defined benefit pension and other benefit plan amortization, net of tax of $555 in 3 months ended June 30th ,2009, $1,126 in 6 months ended June 30th, 2009, $287 in 3 months ended June 30th, 2008 and $621 in 6 months ended June 30th, 2008 | 860 | 860 | 860 | ||||||
| Cash flow hedges, net of tax of $8,462 in 3 months ended June 30th, 2009, $4,868 in 6 months ended June 30th, 2009, $19,785 in 3 months ended June 30th, 2008 and $44,171 6 months ended June 30th 2008 | (13,046) | (13,046) | (13,046) | ||||||
| Distribution on behalf of noncontrolling interest | (249) | (249) | |||||||
| Equity contribution to PATH, LLC by the joint venture partner | 470 | 470 | |||||||
| Dividends on common stock | (25,421) | (25,421) | (25,421) | ||||||
| Stock-based compensation expense: | |||||||||
| Stock units | 4 | 4 | 4 | ||||||
| Non-employee director stock awards | 2,706 | ||||||||
| Non-employee director stock awards | 3 | 237 | (9) | 231 | 231 | ||||
| Stock options | 2,274 | 2,274 | 2,274 | ||||||
| Performance shares | 2,486 | 2,486 | 2,486 | ||||||
| Restricted shares | 35 | 35 | 35 | ||||||
| Exercise of stock options | 80,840 | ||||||||
| Exercise of stock options | 102 | 1,075 | 1,177 | 1,177 | |||||
| Dividends on stock units | 1 | (1) | 0 | ||||||
| Other | (233) | (1) | (234) | 1 | (233) | ||||
| Ending Balance at Jun. 30, 2009 | ($1,756) |
| Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $) | |||
| In Thousands | Accumulated other comprehensive loss
| Energy, Inc. common stockholders' equity
| Total
|
| Defined benefit pension and other benefit plan amortization, tax | $621 | $621 | $621 |
| Cash flow hedges, tax | 44,171 | 44,171 | 44,171 |
| Unrealized losses on available-for-sale securities, tax | 1 | 1 | 1 |
| Defined benefit pension and other benefit plan amortization, tax | 287 | 287 | 287 |
| Cash flow hedges, tax | 19,785 | 19,785 | 19,785 |
| Unrealized losses on available-for-sale securities, tax | 1 | 1 | 1 |
| Defined benefit pension and other benefit plan amortization, tax | 1,126 | 1,126 | 1,126 |
| Cash flow hedges, tax | 4,868 | 4,868 | 4,868 |
| Defined benefit pension and other benefit plan amortization, tax | 555 | 555 | 555 |
| Cash flow hedges, tax | $8,462 | $8,462 | $8,462 |
| Notes to Financial Statements | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| NOTE 1: BASIS OF PRESENTATION | NOTE 1: BASIS OF PRESENTATION Business Description Allegheny Energy, Inc. (AE and, together with its subsidiaries, Allegheny) is an integrated energy business that owns and operates electric generation facilities and delivers electric services to customers in Pennsylvania, West Virginia, Maryland and Virginia. Alleghenys two business segments are the Delivery and Services segment and the Generation and Marketing segment. These reportable segments are strategic business units that offer different products and services and are managed separately. The Delivery and Services segment primarily consists of Alleghenys regulated transmission and distribution operations conducted by Monongahela Power Company (Monongahela), The Potomac Edison Company (Potomac Edison) and West Penn Power Company (West Penn and, together with Monongahela and Potomac Edison, the Distribution Companies). The Distribution Companies operate electric transmission and distribution (TD) systems in Pennsylvania, West Virginia, Maryland and Virginia. The Delivery and Services segment also includes the operations of Trans-Allegheny Interstate Line Company (TrAIL Company) and Potomac-Appalachian Transmission Highline, LLC (PATH, LLC). TrAIL Company was formed in 2006 in connection with the management and financing of transmission expansion projects, including the Trans-Allegheny Interstate Line (TrAIL), a 500 kV transmission line to extend from southwestern Pennsylvania through West Virginia and into northern Virginia. PATH, LLC, which is a series limited liability company, was formed in 2007 with a subsidiary of American Electric Power Company, Inc. (AEP) to build the Potomac-Appalachian Transmission Highline (PATH), a high-voltage transmission line that is proposed to extend across West Virginia and into Maryland. In May 2009, Potomac Edison signed definitive agreements to sell its electric distribution operations in Virginia. See Note 3 Assets Held for Sale for additional information. The Generation and Marketing segment primarily consists of Alleghenys electric generation operations conducted by Allegheny Energy Supply Company, LLC (AE Supply) and Monongahelas regulated generation operations, as well as the operations of Allegheny Generating Company (AGC). AGC owns and sells generation capacity to AE Supply and Monongahela, which own approximately 59% and 41% of AGC, respectively. Allegheny Energy Service Corporation (AESC) is a wholly-owned subsidiary of AE that employs substantially all of Alleghenys personnel. Financial Statement Presentation As permitted by the rules and regulations of the Securities and Exchange Commission (SEC), Alleghenys accompanying unaudited Consolidated Financial Statements contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). These unaudited Consolidated Financial Statements should be read in conjunction with Alleghenys Consolidated Financial Statements and Notes in its Annual Report on Form 10-K for the year ended December31, 2008. The acc |
| NOTE 2: RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 2: RECENT ACCOUNTING PRONOUNCEMENTS SFAS 168 In June 2009, the Financial Accounting Standards Board (the FASB) issued Statement of Financial Accounting Standards (SFAS) No.168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles, a replacement of FASB Statement No.162 (SFAS 168). SFAS 168 replaces SFAS No.162, The Hierarchy of Generally Accepted Accounting Principles, and establishes the FASB Accounting Standards Codification (the Codification) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The FASB will no longer issue new standards in the form of Statements, FASB Staff Positions, or Emerging Issues Task Force Abstracts; instead the FASB will issue Accounting Standards Updates. Accounting Standards Updates will not be authoritative in their own right as they will only serve to update the Codification. The issuance of SFAS 168 and the Codification does not change GAAP. SFAS 168 will become effective for Allegheny for the period ending September30, 2009. Allegheny has determined that the adoption of SFAS 168 will not have a material impact on its financial statements. SFAS 167 In June 2009, the FASB issued SFAS No.167, Amendments to FASB Interpretation No.46(R) (SFAS 167). SFAS 167 amends FASB Interpretation No.46 (revised December 2003), Consolidation of Variable Interest Entities an interpretation of ARB No.51, (FIN 46(R)) to require an enterprise to perform an analysis to determine whether the enterprises variable interests give it a controlling financial interest in a variable interest entity; to require ongoing assessments of whether an enterprise is the primary beneficiary of a variable interest entity; and to require enhanced disclosures with more transparent information about an enterprises involvement in a variable interest entity. It is possible that the application of SFAS 167 will change Alleghenys assessment of which entities with which it is involved are variable interest entities and which variable interest entities should be consolidated by Allegheny. SFAS 167 will be effective for Allegheny on January1, 2010. Allegheny is currently evaluating the potential impact of SFAS 167 on its financial statements. SFAS 165 In May 2009, the FASB issued SFAS No.165, Subsequent Events (SFAS 165). SFAS 165 establishes general standards of accounting for, and disclosure of, events that occur after the balance sheet date but before financial statements are issued. Specifically, SFAS 165 sets forth the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, and the disclosures that an entity should |
| NOTE 3: ASSETS HELD FOR SALE | NOTE 3: ASSETS HELD FOR SALE On May 4, 2009, Potomac Edison signed definitive agreements to sell its electric distribution operations in Virginia (VA Distribution Business) to Rappahannock Electric Cooperative and Shenandoah Valley Electric Cooperative (the Buyers). The agreements are subject to state regulatory approval in Virginia and West Virginia, as well as federal approval and certain third-party consents. Under the terms of the agreements, Potomac Edison will transfer its Virginia distribution assets and certain related liabilities to the Buyers in exchange for cash proceeds of approximately $340 million, subject to adjustment for changes in assets and liabilities through the closing date. The sale is expected to close during late 2009 or early 2010. The VA Distribution Business is a component of the Delivery and Services segment. For periods after May4, 2009, assets and liabilities relating to the VA Distribution Business are classified as held for sale in Alleghenys consolidated balance sheets, and depreciation expense on such assets ceased. Assets held for sale and liabilities associated with assets held for sale at June30, 2009 were as follows: (In millions) Amounts Current Assets: Accounts receivable $ 28.8 Materials and supplies 0.8 Regulatory assets 0.5 Total current assets 30.1 Property, Plant and Equipment: Distribution property, plant and equipment 340.5 Accumulated depreciation (91.4 ) Property, plant and equipment, net 249.1 Deferred Charges: Regulatory assets 0.1 Assets held for sale $ 279.3 Current Liabilities: Customer deposits $ 4.9 Regulatory liabilities 7.1 Other 0.7 Total current liabilities 12.7 Deferred Credits and Other Liabilities: Regulatory liabilities 52.9 Other 1.2 Total deferred credits and other liabilities 54.1 Liabilities associated with assets held for sale $ 66.8 |
| NOTE 4: REGULATORY ASSETS AND LIABILITIES | NOTE 4: REGULATORY ASSETS AND LIABILITIES Alleghenys regulated utility operations are subject to utility industry specific accounting provisions. Regulatory assets represent probable future revenues associated with incurred costs that are expected to be recovered in the future from customers through the rate-making process. Regulatory liabilities represent probable future reductions in revenues associated with amounts that are to be credited or refunded to customers through the rate-making process or amounts collected for costs not yet incurred. Regulatory assets and regulatory liabilities reflected in the Consolidated Balance Sheets were as follows: (In millions) June30, 2009 December31, 2008 Regulatory assets, including current portion: Income taxes (a)(b) $ 225.5 $ 231.3 Pension benefits and postretirement benefits other than pensions (a)(c) 381.9 390.4 Pennsylvania Competitive Transition Charge (CTC) reconciliation (d) 38.1 73.6 Unamortized loss on reacquired debt (a)(e) 28.9 31.1 Unrealized loss on decreased fair value of financial transmission rights (f) 4.8 17.8 Deferred ENEC charges (f) 78.5 52.0 Other (g) 57.3 50.3 Subtotal 815.0 846.5 Regulatory liabilities, including current portion: Net asset removal costs Virginia (h) 50.6 Net asset removal costs other than Virginia 367.1 356.8 Income taxes 33.5 35.2 SO2 allowances 13.0 13.3 Virginia collections for costs not yet incurred 28.3 Fort Martin Scrubber project environmental control surcharge 33.9 29.1 Maryland rate stabilization and transition plan surcharge 51.7 61.7 Other 20.1 23.1 Subtotal 519.3 598.1 Net regulatory assets $ 295.7 $ 248.4 (a) Does not earn a return. (b) Amount is being recovered over various periods associated with the remaining useful life of related regulated utility property, plant and equipment. (c) Amount is being recovered over a period up to 13 years. (d) Recorded amount includes an 11% return earned through 2005. No additional return will be earned through the 2010 recovery period. (e) Amount is being recovered over various periods through 2025, based upon the maturities of reacquired debt. (f) Includes amounts that do not earn a return with recovery periods up to two years. (g) Includes amounts that do not earn a return with various recovery periods through 2027. (h) Net asset removal costs of $52.7 million are included in liabilities associated with assets held for sale at June30, 2009 in the consolidated balance sheet. |
| NOTE 5: INCOME TAXES | NOTE 5: INCOME TAXES Allegheny computes income taxes under the liability method. Deferred income tax balances are generally determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Tax benefits are recognized in the financial statements when it is more likely than not that a tax position will be sustained upon examination by the tax authorities based on the technical merits of the position. Such tax positions are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority, assuming full knowledge of the position and all relevant facts. Allegheny allocates federal income tax expense (benefit) among its subsidiaries pursuant to its consolidated tax sharing agreement. The following is a reconciliation of reported income tax expense to income tax expense calculated by applying the federal statutory rate of 35% to income before income taxes: Three Months Ended June30, Six Months Ended June30, 2009 2008 2009 2008 (In millions, except percent) Amount % Amount % Amount % Amount % Income before income taxes $ 121.8 $ 244.3 $ 356.8 $ 438.9 Income tax expense calculated at the federal statutory rate of 35% 42.6 35.0 85.5 35.0 124.9 35.0 153.6 35.0 Increases (reductions) resulting from: Rate-making effects of depreciation differences 1.7 1.4 2.0 0.8 3.5 1.0 3.9 0.9 Plant removal costs (1.0 ) (0.8 ) (1.2 ) (0.5 ) (2.1 ) (0.6 ) (2.6 ) (0.6 ) State income tax, net of federal income tax benefit 4.3 3.5 7.2 3.0 12.5 3.5 13.0 3.0 Amortization of deferred investment tax credits (0.9 ) (0.7 ) (0.8 ) (0.3 ) (1.8 ) (0.5 ) (1.6 ) (0.4 ) Change in estimated Pennsylvania net operating loss benefits (3.0 ) (1.2 ) 9.5 2.7 (3.0 ) (0.7 ) March 2008 West Virginia state income tax rate change (6.7 ) (1.5 ) Changes in tax reserves related to uncertain tax positions and audit settlements 1.5 1.2 2.5 1.0 3.2 0.9 (5.1 ) (1.2 ) Other, net 0.7 0.5 (2.4 ) (1.0 ) 0.1 (3.4 ) (0.8 ) Income tax expense $ 48.9 40.1 $ 89.8 36.8 $ 149.8 42.0 $ 148.1 33.7 |
| NOTE 6: COMMON STOCK AND DEBT | NOTE 6: COMMON STOCK AND DEBT Common Stock On June22, 2009 and March23, 2009, AE paid cash dividends on its common stock of $0.15 per share to shareholders of record at the close of business on June8, 2009 and March9, 2009, respectively. On July9, 2009, AEs Board of Directors authorized a cash dividend on its common stock of $0.15 per share payable on September28, 2009 to shareholders of record on September14, 2009. Debt Outstanding debt and scheduled debt repayments at June30, 2009 were as follows: (In millions) 2009 2010 2011 2012 2013 Thereafter Total AE Supply: Medium-Term Notes $ $ $ 400.0 $ 650.0 $ $ $ 1,050.0 AE Supply Credit Facility: Term Loan 447.0 447.0 Pollution Control Bonds 1.3 267.2 268.5 Debentures-AGC 100.0 100.0 Total AE Supply 847.0 651.3 367.2 1,865.5 Monongahela: Environmental Control Bonds (a) 5.4 11.1 11.6 12.2 12.8 271.2 324.3 First Mortgage Bonds 300.0 340.0 640.0 Medium-Term Notes 110.0 110.0 Pollution Control Bonds 6.0 7.1 57.2 70.3 Total Monongahela 5.4 121.1 11.6 18.2 319.9 668.4 1,144.6 West Penn: First Mortgage Bonds 420.0 420.0 Transition Bonds (a) 39.3 16.0 55.3 Medium-Term Notes 80.0 80.0 Total West Penn 39.3 16.0 80.0 420.0 555.3 Potomac Edison: First Mortgage Bonds 420.0 420.0 Environmental Control Bonds (a) 1.9 3.7 3.9 4.1 4.3 90.5 108.4 Total Potomac Edison 1.9 3.7 3.9 4.1 4.3 510.5 528.4 TrAIL Company: Term Loan 230.0 230.0 Revolving Loan 20.0 20.0 Total TrAIL 250.0 250.0 Unamortized debt discounts (0.8 ) (1.5 ) (1.2 ) (0.7 ) (0.6 ) (1.4 ) (6.2 ) Eliminations (b) (1.3 ) (13.1 ) (14.4 ) Total consolidated debt $ 45.8 $ 139.3 $ |
| NOTE 7: BUSINESS SEGMENTS | NOTE 7: BUSINESS SEGMENTS Allegheny manages and evaluates its operations in two business segments, the Delivery and Services segment and the Generation and Marketing segment. The Delivery and Services segment includes the operations of Potomac Edison, West Penn, TrAIL Company, PATH, LLC and Monongahelas electric TD business. The Generation and Marketing segment includes the operations of AE Supply, AGC and Monongahelas West Virginia generating assets. In addition, the Generation and Marketing segment consists of an unregulated component and a regulated component. The unregulated component primarily consists of AE Supplys power generation and marketing operations, including the results of operations related to AGC on a fully consolidated basis. The regulated component consists of Monongahelas regulated West Virginia generation operations and Monongahelas interest in AGC under the equity method of accounting. The following tables summarize results of operations for Alleghenys two reportable segments. The information for the Delivery and Services segment includes the operations of the Virginia distribution business. See Note 3, Assets Held for Sale, for additional information. Three Months Ended June30, 2009 Generation and Marketing Delivery and Services Eliminations Total (In millions) Unregulated Regulated Eliminations Total External operating revenues $ 75.3 $ 739.4 $ $ 814.7 Internal operating revenues 419.2 1.9 (421.1 ) Total operating revenues $ 374.2 $ 127.0 $ (6.7 ) $ 494.5 $ 741.3 $ (421.1 ) $ 814.7 Fuel $ 153.6 $ 63.2 $ $ 216.8 $ $ $ 216.8 Purchased power and transmission $ 8.8 $ 28.8 $ (6.7 ) $ 30.9 $ 500.5 $ (419.2 ) $ 112.2 Deferred energy costs, net $ $ (10.7 ) $ $ (10.7 ) $ 3.1 $ $ (7.6 ) Operations and maintenance $ 88.9 $ 22.7 $ 0.1 $ 111.7 $ 90.7 $ (1.9 ) $ 200.5 Depreciation and amortization $ 23.9 $ 5.2 $ (0.4 ) $ 28.7 $ 38.5 $ $ 67.2 Taxes other than income taxes $ 8.5 $ 2.3 $ $ 10.8 $ 35.7 $ $ 46.5 Operating income $ 90.5 $ 15.5 0.3 $ 106.3 $ 72.8 $ $ 179.1 Other income (expense), net $ 0.3 $ 3.0 $ (2.7 ) $ 0.6 $ 1.2 $ $ 1.8 Interest expense $ 20.0 $ 12.8 $ $ 32.8 $ 26.3 $ $ 59.1 Income tax expense $ 26.8 $ 2.4 $ (0.1 ) $ 29.1 $ 19.8 $ $ 48.9 Net income $ 44.0 $ 3.3 $ (2.3 ) $ 45.0 $ 27.9 $ $ 72.9 Net income attributable to Allegheny Energy, Inc. $ 41.7 $ 3.3 $ $ 45.0 $ 27.6 $ $ 72.6 Three Months Ended June 30, 2008 Generation and Marketing Delivery and Services Eliminations Total (In millions) Unregulated Regulated Eliminations Total |
| NOTE 8: FAIR VALUE MEASUREMENTS, DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 8: FAIR VALUE MEASUREMENTS, DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Alleghenys assets and liabilities measured at fair value on a recurring basis at June30, 2009 consisted of the following: (In millions) Assets Liabilities Cash equivalents (a) $ 229.3 $ Derivative instruments (b): Current 368.3 (14.9 ) Non-current 13.4 (10.6 ) Total recurring fair value measurements $ 611.0 $ (25.5 ) (a) Cash equivalents represent amounts invested in money market mutual funds and are valued using Level 1 inputs. (b) Before netting of cash collateral and financial transmission right (FTR) obligation. The following table disaggregates the net fair values of derivative assets and liabilities, before netting of cash collateral and FTR obligation, based on their level within the fair value hierarchy. This table excludes derivatives that have been designated as normal purchases or normal sales. June30, 2009 December31, 2008 (In millions) Derivative Assets Derivative Liabilities NetDerivative Assets Derivative Assets Derivative Liabilities NetDerivative Assets Level 1 $ 29.0 $ (1.8 ) $ 27.2 $ 10.5 $ $ 10.5 Level 2 102.2 (23.7 ) 78.5 112.4 (34.3 ) 78.1 Level 3 250.5 250.5 189.8 189.8 Total $ 381.7 $ (25.5 ) $ 356.2 $ 312.7 $ (34.3 ) $ 278.4 Derivative assets and liabilities included in Level 1 primarily consist of exchange-traded futures and other exchange-traded transactions that are valued using closing prices for identical instruments in active markets. Derivative assets and liabilities included in Level 2 primarily consist of commodity forward contracts and interest rate swaps and are valued using a pricing model with inputs that are observable in the market, such as quoted forward prices of commodities, or that can be derived from or corroborated by observable market data. Derivative assets included in Level 3 consist of FTRs and are valued using an internal model based on data from PJM Interconnection, L.L.C. (PJM) annual and monthly FTR auctions. The following table shows the expected settlement year for derivative assets and liabilities outstanding before netting of cash collateral and FTR obligation at June30, 2009: (In millions) 2009 2010 2011 2012 Total Level 1 $ (0.2 ) $ 30.0 $ (1.1 ) $ (1.5 ) $ 27.2 Level 2 94.3 (12.3 ) (3.0 ) (0.5 ) 78.5 Level 3 135.0 115.5 250.5 Net derivative assets (liabilities) $ 229.1 $ 133.2 $ (4.1 ) $ (2.0 ) $ 356.2 The following tables provide a reconciliation of the beginning and ending balance of FTR derivative assets measured at fair value (Level 3): ThreeMonthsEndedJun |
| NOTE 9: STOCK-BASED COMPENSATION | NOTE 9: STOCK-BASED COMPENSATION The following table summarizes stock-based compensation expense included in operations and maintenance expenses: ThreeMonthsEnded June30, SixMonthsEnded June30, (In millions) 2009 2008 2009 2008 Stock options $ 2.3 $ 2.7 $ 4.0 $ 4.8 Performance shares 2.5 0.4 4.1 0.4 Stock units 0.0 0.3 0.1 0.6 Non-employee director shares 0.2 0.3 0.4 0.5 Total stock-based compensation expense 5.0 3.7 8.6 6.3 Income tax benefit 2.0 1.5 3.5 2.6 Total stock-based compensation expense, net of tax $ 3.0 $ 2.2 $ 5.1 $ 3.7 Stock-based compensation expense is based on awards ultimately expected to vest, using an estimated annual forfeiture rate of 5%. No stock-based compensation cost was capitalized during the six months ended June30, 2009 and 2008. Stock Options Allegheny records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant under the Black-Scholes option-pricing model using the following weighted-average assumptions for stock options granted during the three and six months ended June30, 2009 and 2008: ThreeMonthsEndedJune30, SixMonthsEndedJune30, 2009 2008 2009 2008 Annual risk-free interest rate 3.46 % 3.51 % 2.86 % 3.14 % Expected term of the option 6years 5.95years 6years 5.99years Expected annual dividend yield 2.30 % 1.15 % 2.53 % 1.11 % Expected stock price volatility 35.0 % 25.8 % 36.4 % 27.4 % Grant date fair value per stock option $ 8.08 $ 14.57 $ 7.14 $ 15.49 The annual risk-free interest rate is based on the United States Treasury yield curve at the date of the grant for a period equal to the expected term of the options granted. The expected term of the stock option grants for the three and six months ended June30, 2009 and 2008, was calculated in accordance with Staff Accounting Bulletin 107, using the simplified method. AE continues to use the simplified method for its calculation of expected term due to its lack of sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term and because AE has granted stock options in prior years with varying vesting terms, which also makes it difficult to evaluate historical exercise data. The expected annual dividend yield assumption was based on AEs current dividend rate at the time of each grant. For stock options granted during the three and six months ended June30, 2009 and 2008, the expected stock price volatility was based on both historical stock volatility and the volatility levels implied on the grant date by actively traded option contracts on AEs common stock. Stock option activity during the three and six months ended June30, 2009 was as follows: Stock Options Weighted Average Exercise Pr |
| NOTE 10: PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS | NOTE 10: PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS Substantially all of Alleghenys personnel, including officers, are employed by AESC and are covered by a noncontributory, defined benefit pension plan. Allegheny also maintains a Supplemental Executive Retirement Plan (the SERP) for executive officers and other senior executives. Allegheny also provides subsidies for medical and life insurance plans for eligible retirees and dependents. Medical benefits, which make up the largest component of the postretirement benefits other than pensions, have retiree premiums based upon an age and years-of-service vesting schedule, include other plan provisions that limit future benefits and take into account certain collective bargaining arrangements. Subsidized medical coverage is not provided in retirement to employees hired on or after January1, 1993, with the exception of certain union employees who were hired or became members before May1, 2006. The provisions of the postretirement health care plans and certain collective bargaining arrangements limit Alleghenys costs for eligible retirees and dependents. The components of the net periodic cost for pension benefits for employees and covered dependents by Allegheny were as follows: Pension Benefits ThreeMonthsEnded June30, SixMonthsEnded June30, (In millions) 2009 2008 2009 2008 Components of net periodic cost: Service cost $ 5.6 $ 5.3 $ 11.1 $ 10.6 Interest cost 17.7 17.1 35.5 34.2 Expected return on plan assets (18.5 ) (19.2 ) (37.1 ) (38.4 ) Amortization of unrecognized transition obligation 0.1 0.1 0.2 0.2 Amortization of prior service cost 0.8 0.8 1.6 1.6 Recognized actuarial loss 2.8 1.8 5.6 3.6 Net periodic cost $ 8.5 $ 5.9 $ 16.9 $ 11.8 The components of the net periodic cost for postretirement benefits other than pensions (principally health care and life insurance) for employees and covered dependents by Allegheny were as follows: PostretirementBenefitsOtherthanPensions ThreeMonthsEnded June30, SixMonthsEnded June30, (In millions) 2009 2008 2009 2008 Components of net periodic cost: Service cost $ 1.1 $ 1.1 $ 2.2 $ 2.2 Interest cost 4.3 4.3 8.5 8.6 Expected return on plan assets (1.3 ) (1.8 ) (2.6 ) (3.6 ) Amortization of unrecognized transition obligation 1.4 1.4 2.8 2.8 Recognized actuarial loss 0.5 0.2 1.0 0.3 Net periodic cost $ 6.0 $ 5.2 $ 11.9 $ 10.3 For the three months ended June30, 2009 and 2008, Allegheny capitalized $4.4 million and $3.3 million, respectively, and for the six months ended June30, 2009 and 2008, Allegheny capitalized $8.7 mil |
| NOTE 11: FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 11:FAIR VALUE OF FINANCIAL INSTRUMENTS As of June30, 2009 and December31, 2008, the carrying amounts of accounts receivable, accounts payable, accrued liabilities and short-term debt are representative of fair value because of their short-term nature. The carrying amounts and estimated fair values of long-term debt, including long-term debt due within one year, were as follows: June30, 2009 December31, 2008 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt $ 4,323.2 $ 4,371.4 $ 4,209.8 $ 3,951.7 The fair value of long-term debt was estimated based on actual market prices or market prices of similar debt issues. |
| NOTE 12: COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 12: COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS Comprehensive income consisted of the following: ThreeMonthsEnded June30, Six Months Ended June30, (In millions) 2009 2008 2009 2008 Net income 72.9 $ 154.5 $ 207.0 $ 290.9 Other comprehensive income, net of tax: Cash flow hedges, net of tax of $8.3, $19.8, $4.9 and $44.3, respectively (13.1 ) (31.1 ) 8.0 (69.9 ) Defined benefit pension and other benefit plan amortization, net of tax of $0.6, $0.3, $1.1 and $0.6, respectively 0.9 0.4 1.7 0.7 Comprehensive income 60.7 123.8 216.7 221.7 Less comprehensive income attributable to noncontrolling interest (0.3 ) (0.4 ) (0.4 ) (0.6 ) Comprehensive income attributable to Allegheny Energy, Inc. $ 60.4 $ 123.4 $ 216.3 $ 221.1 The components of accumulated other comprehensive loss, included in the shareholders equity section of the Consolidated Balance Sheets, were as follows: (In millions) June30, 2009 December31, 2008 Cash flow hedges, net of tax of $22.7 million and $17.8 million, respectively $ 36.1 $ 28.1 Net unrecognized pension and other benefit plan costs, net of tax of $(47.6) million and $(48.7) million, respectively (69.7 ) (71.4 ) Total $ (33.6 ) $ (43.3 ) |
| NOTE 13: EARNINGS PER SHARE | NOTE 13: EARNINGS PER SHARE The reconciliation of the basic and diluted earnings per common share calculation is as follows: Three Months Ended June30, Six Months Ended June30, (In millions, except share and per share amounts) 2009 2008 2009 2008 Basic Income per Share: Numerator: Net income attributable to Allegheny Energy, Inc. $ 72.6 $ 154.1 $ 206.5 $ 290.3 Denominator: Weighted average common shares outstanding 169,505,918 168,236,148 169,472,787 167,898,112 Basic earnings per share attributable to Allegheny Energy, Inc. $ 0.43 $ 0.92 $ 1.22 $ 1.73 Diluted Income per Share: Numerator: Net income attributable to Allegheny Energy, Inc. $ 72.6 $ 154.1 $ 206.5 $ 290.3 Denominator: Weighted average common shares outstanding 169,505,918 168,236,148 169,472,787 167,898,112 Effect of dilutive securities: Stock options (a) 378,173 1,452,555 392,938 1,673,955 Stock units 4,255 349,754 4,262 395,974 Non-employee stock awards 54,470 53,182 Performance shares 19,558 13,271 18,378 6,635 Total shares 169,907,904 170,106,198 169,888,365 170,027,858 Diluted earnings per share attributable to Allegheny Energy, Inc. $ 0.43 $ 0.91 $ 1.22 $ 1.71 (a) The dilutive share calculations exclude 1,999,148 shares and 570,877 shares for the three months ended June30, 2009 and 2008, respectively, and 1,621,827 shares and 418,160 shares for the six months ended June30, 2009 and 2008, respectively, relating to stock options because the inclusion of these amounts would have been antidilutive under the treasury stock method. |
| NOTE 14: OTHER INCOME (EXPENSE), NET | NOTE 14: OTHER INCOME (EXPENSE), NET Other income (expense), net, consisted of the following: ThreeMonthsEnded June30, SixMonthsEnded June30, (In millions) 2009 2008 2009 2008 Equity component of AFUDC $ 1.2 $ 0.7 $ 2.4 $ 1.4 Interest and dividend income 0.4 1.3 1.3 4.0 Cash received from a former trading executives forfeited assets 1.6 Other 0.2 2.7 0.5 3.9 Total $ 1.8 $ 4.7 $ 4.2 $ 10.9 |
| NOTE 15: COMMITMENTS AND CONTINGENCIES | NOTE 15: COMMITMENTS AND CONTINGENCIES Allegheny is involved in a number of significant legal proceedings. In certain cases, plaintiffs seek to recover large and sometimes unspecified damages, and some matters may be unresolved for several years. Allegheny cannot currently determine the outcome of the proceedings described below or the ultimate amount of potential losses. Management provides for estimated losses to the extent that information becomes available indicating that losses are probable and that the amounts are reasonably estimable. Additional losses may have an adverse effect on Alleghenys results of operations, cash flows and financial condition. Environmental Matters and Litigation The operations of Alleghenys owned facilities, including its generation facilities, are subject to various federal, state and local laws, rules and regulations as to air and water quality, hazardous and solid waste disposal and other environmental matters, some of which may be uncertain. Compliance may require Allegheny to incur substantial additional costs to modify or replace existing and proposed equipment and facilities. Global Climate Change. The United States relies on coal-fired power plants for more than 50 percent of its energy. However, coal-fired power plants have come under scrutiny due to their emission of gases implicated in climate change, primarily carbon dioxide, or CO2. Allegheny produces approximately 95 percent of its electricity at coal-fired facilities and currently produces approximately 45million tons of CO2 annually through its energy production. While there are many unknowns concerning the final regulation of greenhouse gases in the United States, federal and/or state legislation and implementing regulations addressing climate change likely will be adopted some time in the future, and may include limits on emissions of CO2. Thus, CO2 legislation and regulation, if not reasonably designed, could have a significant impact on Alleghenys operations. On June26, 2009, the U.S. House of Representatives passed the American Clean Energy and Security Act. The U.S. Senate has not yet completed its mark-up of the bill. Allegheny can provide no assurance that limits on CO2 emissions, if imposed, will be set at levels that can accommodate its generation facilities absent the installation of controls. Moreover, there is a gap between desired reduction levels in the current proposed legislation and the current capabilities of technology; no current commercial-scale technology exists to enable many of the reduction levels in national, regional and state proposals. Such technology may not become available within a timeframe consistent with the implementation of any future climate control legislation or at all. To the extent that such technology does become available, Allegheny can provide no assurance that it will be suitable for installation at Alleghenys generation facilities on a cost effective basis or at all. Based on estimates from a 2007 U.S. Department of Energy (DOE) National Electric Technology Laboratory report and announced projects by other entities, it could cost as much as $5,500 per kW to replace existing coal |
| NOTE 16: SUBSEQUENT EVENT | NOTE 16: SUBSEQUENT EVENT In July 2009, the Pennsylvania Economic Development Financing Authority issued $235 million of 7.0% tax-exempt bonds that mature in 2039 and loaned the proceeds therefrom to AE Supply to finance a portion of the cost of constructing and installing Scrubbers at AE Supplys Hatfields Ferry generation facility. |
| Document Information | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Document Information [Text Block] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Amendment Description | N.A. |
| Document Period End Date | 2009-06-30 |
| Entity Information (USD $) | |||
| 6 Months Ended
Jun. 30, 2009 | Jul. 31, 2009
| Jun. 30, 2008
| |
| Entity [Text Block] | |||
| Trading Symbol | AYE | ||
| Entity Registrant Name | ALLEGHENY ENERGY, INC | ||
| Entity Central Index Key | 0000003673 | ||
| Current Fiscal Year End Date | --12-31 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Current Reporting Status | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Common Stock, Shares Outstanding | 169,482,591 | ||
| Entity Public Float | $8,405,810,288 |
