HAGERSTOWN, Md., Oct. 15, 2002 — Allegheny Energy Inc. announced that it has filed with the United States Securities and Exchange Commission (SEC) an application seeking approval for its subsidiary, Allegheny Energy Supply Company, LLC, to provide collateral to support additional borrowings.
This application seeks authorization for Allegheny Energy Supply to borrow up to $2 billion on a secured basis. As a part of the filing, Allegheny Energy disclosed that it intends to reduce its dividend to between 0 percent and 50 percent of the current dividend level through at least the fourth quarter of 2003. No determination has been made by the Board of Directors as to the actual future dividend level within this range.
Allegheny said the SEC filing was part of its ongoing effort to obtain the liquidity necessary to cure existing default conditions and to resume posting collateral to trading counterparties. “We are engaged in active discussions with our banks regarding our position and are working to obtain additional liquidity as quickly as is possible,” said Alan J. Noia, Allegheny Energy Chairman, President, and Chief Executive Officer.
With headquarters in Hagerstown, Md., Allegheny Energy is an integrated Fortune 500 energy company with a balanced portfolio of businesses, including Allegheny Energy Supply, which owns and operates electric generating facilities and supplies energy and energy-related commodities in selected domestic retail and wholesale markets; Allegheny Power, which delivers low-cost, reliable electric and natural gas service to about three million people in Maryland, Ohio, Pennsylvania, Virginia, and West Virginia; and a business segment offering fiber-optic and data services, energy procurement and management, and energy services. More information about the Company is available at www.alleghenyenergy.com.
Source: Allegheny Energy