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Allegheny Energy Supply attempt to transfer deals is opposed by Calif. board

November 06, 2002|by JULIE E. GREENE

As expected, the California Electricity Oversight Board has formally filed its opposition to Allegheny Energy Supply Co.'s attempt to transfer two California supply contracts to a new Allegheny Energy subsidiary.

The oversight board filed a motion on Monday asking the Federal Energy Regulatory Commission to intervene and stay Allegheny's request to transfer the two contracts to Allegheny Trading Finance Co. Allegheny filed the request Oct. 21.

Last week Erik Saltmarsh, director and chief counsel for the oversight board, said moving those contracts to a separate company with no other assets could allow Allegheny to default on the contracts and leave California with no recourse.

Allegheny and the oversight board have both filed motions with the FERC regarding the contracts.

California is trying to get the contracts restructured to a lower price or voided because the cost of electricity has fallen significantly since the contracts with Allegheny were made.

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Allegheny has asked the FERC to dismiss a California complaint about the two contracts.

Allegheny Energy Supply Co. is the energy trading subsidiary of Allegheny Energy.

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