Earnings
Allegheny To Sell Virginia Distribution Operations
The Associated Press
05/05/09 - 12:42 PM EDT
GREENSBURG, Pa. (AP) Allegheny Energy Inc., an electricity and natural gas provider, on Tuesday said that its subsidiary, The Potomac Edison Company, has signed an agreement to sell its distribution operations in Virginia to Rappahannock Electric Cooperative and Shenandoah Valley Electric Cooperative for proceeds of $340 million.
The buyers have agreed to offer employment to the 102 Allegheny employees affected by the sale, the company said in a statement.
In 2008 Potomac Edison earned $182 million in revenue on 3.1 million megawatt-hours of sales in Virginia.
Allegheny said this sale allows the company to focus on its core states of Pennsylvania, West Virginia and Maryland, as well as its generation fleet.
The sale is expected to close by the end of 2009.
Shares of the company rose 54 cents to $28.06 in afternoon trading.