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8-K - FORM 8-K - FIRSTENERGY CORP | y41645ae8vk.htm |
EX-5.1 - EX-5.1 - FIRSTENERGY CORP | y41645aexv5w1.htm |
EX-3.1 - EX-3.1 - FIRSTENERGY CORP | y41645aexv3w1.htm |
EX-10.3 - EX-10.3 - FIRSTENERGY CORP | y41645aexv10w3.htm |
EX-10.4 - EX-10.4 - FIRSTENERGY CORP | y41645aexv10w4.htm |
EX-10.2 - EX-10.2 - FIRSTENERGY CORP | y41645aexv10w2.htm |
EX-10.5 - EX-10.5 - FIRSTENERGY CORP | y41645aexv10w5.htm |
FirstEnergy Corp. 76 South Main Street Akron, Ohio 44308 www.firstenergycorp.com |
For Release: February 25, 2011 |
News Media Contact: Ellen Raines (330) 384-5808 |
Investor Relations Contact: Ron Seeholzer (330) 384-5415 |
FirstEnergy-Allegheny Energy Merger Closes Effective Today
Akron, Ohio FirstEnergy Corp. (NYSE: FE) announced that its merger with Allegheny Energy,
Inc. (NYSE: AYE), has closed, effective today, marking the beginning of combined operations. This
follows the companys acceptance of conditions included in yesterdays Pennsylvania Public Utility
Commission approval.
We are pleased to have completed our merger and look forward to delivering to our customers,
shareholders and employees the significant benefits of a larger, stronger company, said President
and Chief Executive Officer Anthony J. Alexander.
The company also announced that it will locate regional headquarters for Maryland and West
Virginia utility operations in Washington County, Md., and Fairmont, W.Va., respectively. The
current headquarters building for Allegheny Energy in Greensburg, Pa., will become the regional
headquarters for West Penn Power utility operations.
These moves underscore the companys focus on regional operations. In addition, the company
plans to reintroduce the utility operating names Mon Power, Potomac Edison and West Penn Power
to Allegheny Power customers.
The regional headquarters for Potomac Edisons Maryland operations will be located in
Allegheny Powers existing central distribution center in Washington County. This facility was
chosen because it is centrally located, can accommodate the Potomac
Edison management organization and is already equipped with the companys information
technology infrastructure, a significant cost savings. Newly appointed president of Maryland
Operations, James V. Fakult, and his staff will operate from there.
West Virginia regional headquarters will be located in the newly constructed transmission
operations center in Fairmont. This facility was designed to accommodate additional functions, is
conveniently located near other company facilities including the Fairmont Call Center, and has
updated information technology infrastructure. James R. Haney, president of West Virginia
Operations, and his staff will be located there.
West Penn Power, Allegheny Energys Pennsylvania utility company, will remain headquartered in
Greensburg, and regional president, David W. McDonald, and his staff will be located there.
FirstEnergy, which has its corporate headquarters in Akron, Ohio, currently has regional
utility headquarters in Akron, Cleveland and Toledo, Ohio; Erie and Reading, Pa.; and Morristown,
N.J.
In accordance with the dividend synchronization plan announced in December, FirstEnergy
shareholders of record as of February 7, 2011, will receive a pro rata dividend of $0.5255 per
share, payable March 1, 2011. In addition, FirstEnergy shareholders of record as of the close of
business February 25, 2011, will receive a pro rata dividend of $0.0245 per share, payable March 7,
2011. Allegheny Energy shareholders as of the close of business on February 24, 2011, will receive
a prorated final dividend of $0.12045 per share, payable March 11, 2011.
FirstEnergy is a diversified energy company dedicated to safety, reliability and operational
excellence. Its ten electric distribution companies comprise the nations largest investor-owned
electric system. Its diverse generating fleet features non-emitting nuclear, scrubbed baseload
coal, natural gas, and pumped-storage hydro and other renewables, and has a total generating
capacity of approximately 23,000 megawatts.
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Forward-Looking Statements: This news release includes forward-looking statements based on
information currently available to management. Such statements are subject to certain risks and
uncertainties. These statements include declarations regarding managements intents, beliefs and
current expectations. These statements typically contain, but are not limited to, the terms
anticipate, potential, expect, believe, estimate and similar words. Forward-looking
statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by such forward-looking
statements. Actual results may differ materially due to the speed and nature of increased
competition in the electric utility industry, the impact of the regulatory process on the pending
matters in the various states in which we do business (including, but not limited to, proceedings
related to rates and matters with respect to the Trans-Allegheny Interstate Line and
Potomac-Appalachian Transmission Highline projects), business and regulatory impacts from American
Transmission Systems, Incorporateds realignment into PJM Interconnection, L.L.C., economic or
weather conditions affecting future sales and margins, changes in markets for energy services,
changing energy and commodity market prices and availability, financial derivative reforms that
could increase our liquidity needs and collateral costs, replacement power costs being higher than
anticipated or inadequately hedged, the continued ability of FirstEnergys regulated utilities to
collect transition and other costs, operation and maintenance costs being higher than anticipated,
other legislative and regulatory changes, and revised environmental requirements, including
possible greenhouse gas emission and coal combustion residual regulations, the potential impacts of
any laws, rules or regulations that ultimately replace the Clean Air Interstate Rules, the
uncertainty of the timing and amounts of the capital expenditures needed to complete, among other
things, the Trans-Allegheny Interstate Line and Potomac-Appalachian Transmission Highline projects,
the uncertainty of the timing and amounts of the capital expenditures needed to resolve any New
Source Review litigation or other potential similar regulatory initiatives or rulemakings
(including that such expenditures could result in our decision to shut down or idle certain
generating units), adverse regulatory or legal decisions and outcomes (including, but not limited
to, the revocation of necessary licenses or operating permits and oversight by the Nuclear
Regulatory Commission), adverse legal decisions and outcomes related to Metropolitan Edison
Companys and Pennsylvania Electric Companys transmission service charge appeal at the
Commonwealth Court of Pennsylvania, any impact resulting from the receipt by Signal Peak of the
Department of Labors notice of a potential pattern of violations at Bull Mountain Mine No. 1, the
continuing availability of generating units and their ability to operate at or near full capacity,
the ability to comply with applicable state and federal reliability standards and energy efficiency
mandates, changes in customers demand for power, including but not limited to, changes resulting
from the implementation of state and federal energy efficiency mandates, the ability to accomplish
or realize anticipated benefits from strategic goals (including employee workforce initiatives),
the ability to improve electric commodity margins and the impact of, among other factors, the
increased cost of coal and coal transportation on such margins and the ability to experience growth
in the distribution business, the changing market conditions that could affect the value of assets
held in FirstEnergys nuclear decommissioning trusts, pension trusts and other trust funds, and
cause FirstEnergy to make additional contributions sooner, or in amounts that are larger than
currently anticipated, the ability to access the public securities and other capital and credit
markets in accordance with FirstEnergys financing plan and the cost of such capital, changes in
general economic conditions affecting the company, the state of the capital and credit markets
affecting the company, interest rates and any actions taken by credit rating agencies that could
negatively affect FirstEnergys access to financing or its costs and increase its requirements to
post additional collateral to support outstanding commodity positions, letters of credit and other
financial guarantees, the continuing uncertainty of the national and regional economy and its
impact on the companys major industrial and commercial customers, issues concerning the soundness
of financial institutions and counterparties with which FirstEnergy does business, issues arising
from the recently completed merger of FirstEnergy and Allegheny Energy, Inc. and the ongoing
coordination of their combined operations, including FirstEnergys ability to maintain
relationships with customers, employees or suppliers as well as the ability to successfully
integrate the businesses and realize cost savings and any other synergies and the risk that the
credit ratings of the combined company or its subsidiaries may be different from what the companies
expect and the risks and other factors discussed from time to time in FirstEnergys Securities and
Exchange Commission filings, and other similar factors. Dividends declared from time to time on
FirstEnergys common stock during any annual period may in aggregate vary from the indicated amount
due to circumstances considered by FirstEnergys Board of Directors at the time of the actual
declarations. The foregoing review of factors should not be construed as exhaustive. New factors
emerge from time to time, and it is not possible for management to predict all such factors, nor
assess the impact of any such factor on FirstEnergys business or the extent to which any factor,
or combination of factors, may cause results to differ materially from those contained in any
forward-looking statements. The Registrant expressly disclaims any current intention to update any
forward-looking statements contained herein as a result of new information, future events, or
otherwise.
(022511)
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