COLUMBUS, Ohio, Dec. 28, 2005 – AEP Ohio is ready to accept the transfer of Allegheny Energy’s Ohio service territory and its 29,000 customers effective at midnight on Dec. 31, according to Kevin Walker, AEP Ohio president and chief operating officer.
“We are pleased to welcome these customers to AEP Ohio and we have been updating them throughout this process. This transition is expected to be seamless as AEP Ohio takes over operation of the electrical transmission and distribution system from Allegheny Energy,” he said. “Both companies have worked diligently to ensure that all systems will transfer effectively.”
Current customers of Allegheny Energy’s Monongahela Power (Mon Power) subsidiary should continue to contact Allegheny (800-255-3443) through midnight on Saturday, Dec. 31. After that time, customers may contact AEP Ohio’s Customer Solutions Center toll-free at 800-277-2177. The center is open 24 hours per day, seven days a week.
The transfer takes place to fulfill a Nov. 9 order from the Public Utilities Commission of Ohio (PUCO) in which it ruled that the companies could move forward with the transaction. AEP Ohio’s Columbus Southern Power (CSP) operating company is purchasing the Mon Power territory for approximately $46 million. In addition, CSP will pay Allegheny $10 million associated with the termination of certain litigation. The companies plan to close the sale on Dec. 31 with transfer of system operations taking place at midnight.
AEP Ohio is also hiring approximately 24 current Mon Power employees located in Marietta in addition to filling several new positions.
The PUCO issued an order on June 14, 2005, requiring CSP and Mon Power to discuss potential terms and conditions of a transaction through which Mon Power would transfer its Ohio service territory to CSP. The order was issued in an effort to resolve issues related to Mon Power’s planned transition to market-based rates in Ohio.
Mon Power’s market-based rates for residential customers were projected to increase by about 79 percent from its current rates. Residential customers will experience a 23 percent rate increase with AEP Ohio.
“The Commission’s order provides rate stability for the customers in the Mon Power service territory and they will continue to enjoy the same high level of service,” said Walker.
AEP Ohio provides electricity to 1.4 million customers of major AEP subsidiaries Columbus Southern Power Company and Ohio Power Company in Ohio, and Wheeling Power Company in the
northern panhandle of West Virginia. AEP Ohio is based in Gahanna, Ohio, and is a unit of American Electric Power.
American Electric Power owns more than 36,000 megawatts of generating capacity in the United States and is the nation’s largest electricity generator. AEP is also one of the largest electric utilities in the United States, with more than 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio.