Allegheny Energy
| Company type | Public |
|---|---|
| Industry | Electric utility |
| Predecessor | West Penn Electric Company |
| Founded | 1925 |
| Fate | Merged with FirstEnergy in February 2011 |
| Successor | FirstEnergy |
| Headquarters | Greensburg, Pennsylvania , United States |
Area served | Pennsylvania, West Virginia, Maryland, Virginia |
| Products | Electricity generation and distribution |
Number of employees | 4,211 (2010) |
Allegheny Energy was an electric utility company based in Greensburg, Pennsylvania, providing services across Pennsylvania, West Virginia, Maryland, and Virginia. Originally incorporated in Maryland in 1925 as West Penn Electric Company, its roots extend back to the establishment of West Penn Power in 1907.
The organization operated through three primary divisions: merchant generation, which involved operating power plants mainly located in Pennsylvania and West Virginia; transmission expansion efforts; and utility operations, overseeing transmission and distribution services for approximately 1.6 million customers, predominantly situated in rural and smaller communities.
For the fiscal year 2010, Allegheny Energy recorded revenues of $3.9 billion, with an operating income of $931.5 million and a net profit of $411.7 million. The company held assets valued at $12.08 billion and equity totaling $3.44 billion. As of December 2010, the workforce numbered 4,211 employees.
The company merged with FirstEnergy in February 2011, broadening FirstEnergy’s market share and extending its presence within the Mid-Atlantic utility sector.
Subsidiary companies
Allegheny Energy delivered electricity under the brand Allegheny Power through its regulated subsidiaries: West Penn Power serving southwestern and central Pennsylvania; Monongahela Power ("Mon Power"), covering northern and southern West Virginia including Hancock and Brooke Counties; and The Potomac Edison Company, which operated in western Maryland, parts of eastern West Virginia, and until 2010, northern Virginia. Electric generation was handled by Allegheny Energy Supply Company alongside Monongahela Power.
In 1999, Monongahela Power expanded its service area by acquiring distribution assets from West Virginia Power, a utility formerly owned by UtiliCorp United based in Lewisburg, West Virginia. This acquisition increased Allegheny’s footprint in southeastern West Virginia. Previously, UtiliCorp had purchased these assets from Dominion Resources in 1986 to concentrate on Midwestern markets.
Allegheny exited the eastern Ohio market in early 2006 due to regulatory difficulties, selling that territory to Columbus Southern Power, a subsidiary of American Electric Power. In 2010, the company divested its service area in Virginia: counties west of the Blue Ridge Mountains were transferred to Shenandoah Valley Electric Cooperative, while those east were sold to Rappahannock Electric Cooperative.
Merger
In 1997, Allegheny agreed to merge with Duquesne Light Holding Company (DQE) in a $4.3 billion deal designed to serve two million customers across five states with headquarters planned for Hagerstown, Maryland. However, DQE pulled out of the agreement by 1998.
Allegheny announced a merger with FirstEnergy in February 2010 aimed at increasing market share and operational capacity. The transaction was finalized on February 25, 2011, representing a key development in Allegheny’s corporate expansion and industry integration.
Customer service
In 2010, Allegheny Power earned the top ranking for customer satisfaction among utilities in the northeastern United States according to TQS Research. This achievement marked the sixth consecutive year that large commercial and industrial clients recognized Allegheny Power as the leading utility provider in the region.
Approximately half of the company’s regulated utility revenue was generated from southwestern Pennsylvania outside of Pittsburgh.
Environmental policies, practice and record
Allegheny’s approach centers on delivering electricity dependably while safeguarding its workforce, surrounding communities, customers, and the natural environment.
In 1995, the company became a participant in the U.S. Department of Energy’s Climate Challenge Program, pledging to cut greenhouse gas emissions by two million tons each year by 2000. By leveraging demand-side management, enhancing efficiency, promoting alternative transportation methods, and implementing land-use strategies, Allegheny surpassed this target, achieving nearly 8.5 million tons of carbon dioxide-equivalent reductions by the year 2000. Since then, the company has further prevented approximately 9 million tons of emissions through ongoing efficiency improvements and carbon sequestration initiatives.
To meet sulfur dioxide emission regulations, Allegheny adopted a comprehensive system-wide strategy that integrated emission control technologies, utilization of low-sulfur fuels, and emission allowances. The corporation invested $1.3 billion to deploy advanced clean air systems at its Hatfield’s Ferry and Fort Martin power plants. With scrubbers installed at these facilities, 85% of its coal-powered generation fleet now employs state-of-the-art sulfur dioxide control measures, positioning it among the cleanest coal fleets nationwide. These upgrades have also led to significant reductions in mercury emissions at these locations.
2005 litigation
In 2005, the states of New Jersey, New York, Pennsylvania, Connecticut, and Maryland initiated legal action against Allegheny Energy in the United States District Court for the Western District of Pennsylvania. The lawsuit asserted that substantial modifications made to Allegheny’s Armstrong, Hatfield’s Ferry, and Mitchell generating stations resulted in increased emissions without the installation of pollution controls mandated by the Clean Air Act.
The case proceeded to trial in 2010, by which time Allegheny had markedly improved its sulfur dioxide emissions profile. The scrubbers added at Fort Martin and Hatfield’s Ferry in 2009 eliminated roughly 95% of sulfur dioxide emissions from these plants, reducing their output by over 200,000 tons annually. Mercury emissions also saw notable declines. Ultimately, the lawsuit was dismissed in 2014.
At the time the suit was filed, plaintiffs contended that these facilities released thousands of tons of pollutants each year, including sulfur dioxide and nitrogen oxides that contribute to smog formation and acid rain. New Jersey Governor Jon S. Corzine underscored the state’s dedication to upholding clean air laws despite perceived federal enforcement gaps. The complaint highlighted that these three plants emitted more nitrogen oxides than all power plants in New Jersey combined and produced over three times as much sulfur dioxide. Hatfield’s Ferry was identified as the fifth largest single source of sulfur dioxide emissions in the United States. The litigation sought court orders mandating modernized pollution controls, financial penalties, and remedial measures to mitigate public health risks and environmental damage stemming from violations of federal and state statutes.
See also
- Logans Ferry Mine Tunnel, constructed by West Penn Power (Pennsylvania), a predecessor company
