FirstEnergy, Allegheny Energy file Md. merger papers; propose regional HQ in Md. territory

FirstEnergy, Allegheny file Md. merger papers

HAGERSTOWN, Md. — FirstEnergy Corp. told state regulators Thursday it will establish a regional headquarters in central or western Maryland if its proposed merger with Allegheny Energy Inc. goes through.

Akron, Ohio-based FirstEnergy also promised no net reduction due to layoffs of those who maintain Allegheny’s lines and delivery equipment for two years after the deal is consummated. Allegheny has about 380 Maryland-based workers.

Allegheny’s 250,000 Maryland customers would receive a $2.5 million rate refund over two years, according to the merger application filed with the Maryland Public Service Commission.

And FirstEnergy would bring additional competition into Maryland’s retail electric supply market by adding residential customers to the nonresidential customers it currently is certified to serve, the company said.

FirstEnergy and Allegheny, based in Greensburg, Pa., announced their $4.7 billion merger agreement in February. The deal would create one of the nation’s biggest power companies serving 6.1 million customers from Ohio to New Jersey.

They have filed applications with the Federal Energy Regulatory Commission and state regulators in Maryland, Pennsylvania and West Virginia. The merger also would require Virginia’s approval.

Curtis H. Davis, Allegheny’s chief operating officer of generation, said the Maryland regional headquarters would serve Maryland customers of Allegheny’s Potomac Edison subsidiary. Potomac Edison serves all of Allegany, Garrett, Frederick and Washington counties and parts of Carroll, Howard and Montgomery counties.

Davis said no decisions have been made about where the regional headquarters would go or how large it would be. The location would be chosen based on its ability to house employees and ensure adequate delivery of services, he said.

Allegheny was headquartered in Hagerstown from 1996 to 2004, and its old office building remains vacant and for sale. Davis said it was too soon to say whether Hagerstown has an advantage over other possible locations.

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Online:

Maryland Public Service Commission: webapp.psc.state.md.us/Intranet/home.cfm