Commission OKs Settlement Deal For Allegheny

GREENSBURG, Pa. (AP) — Allegheny Power, the electric delivery unit of Allegheny Energy Inc., said Friday that the Public Service Commission of West Virginia has approved a settlement that allows the company to issue bonds to fund the remaining portion of its gas scrubber project near Morgantown, W.Va.

Allegheny is now authorized to issue an additional $105 million in bonds to finance the remaining portion of the $550 million project, plus related financing costs.

As part of the settlement, the company agreed to withdraw its request for a rate increase of $82 million for fuel and purchased power costs. The company said it will pursue recovery of those costs as part of its annual fuel rate case, which was filed on Sept. 1.

Shares of Allegheny Energy fell 22 cents in afternoon trading to reach $25.41.