Allegheny Energy Wins Bid

Allegheny Energy Wins Bid

Allegheny Energy, Inc. (NYSE: AYE) announced that three Maryland municipal electric systems have selected its generation supply subsidiary, Allegheny Energy Supply Company, LLC, to provide power under contracts that will run through May 2011.
Under the new contracts, Allegheny Energy Supply will provide Hagerstown, Thurmont and Williamsport with approximately 525,000 megawatt-hours annually of generation and associated services at fixed prices.
Allegheny was awarded the contracts through a competitive bidding process that began earlier this year. "We're pleased to welcome these municipalities to our generation customer base," said Paul Evanson, chairman, president and chief executive officer of Allegheny Energy. "These contracts provide Allegheny with additional revenue certainty as we continue to transition our generation to market-based rates."
"Allegheny has been a cost-effective supplier in the past and we look forward to renewing that relationship" said Michael Spiker, Manager of the Hagerstown Light Department. " This contract reduces our exposure to the energy market place and is the best solution for the City of Hagerstown and the other municipalities." Service under these contracts will commence in July 2006.