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Allegheny Energy pulls final plug on merger

August 11, 2000

Allegheny Energy pulls final plug on merger



Allegheny Energy has officially abandoned its proposed merger with DQE Inc.

The merger had all but ended in December, when a federal judge ruled in favor of DQE's decision to back out of the proposed $4.3 billion deal.

On Friday, the Hagerstown-based electric company made it official by filing paperwork with the U.S. Securities and Exchange Commission.

"We decided not to pursue it further. We're moving forward with other things," said spokeswoman Cynthia A. Shoop.

The company is acquiring Mountaineer Gas Co., which will add 200,000 natural gas customers in an area of West Virginia that Allegheny is already serving.

In late 1999, it purchased West Virginia Power, which added 26,000 electricity customers and 24,000 natural gas customers.

If the DQE merger had gone forward, it would have created one of the nation's largest electric utility providers.

The decision to abandon the merger is not expected to have any impact on customers, Shoop said.

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- Laura Ernde

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