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Allegheny finds buyer for interest in Ohio corporation

June 24, 2004|by LAURA ERNDE

In the latest step toward improving its financial condition, Allegheny Energy Inc. officials said Wednesday that they found a buyer for the company's interests in the Ohio Valley Electric Corporation.

Buckeye Power Generating LLC, an affiliate of Buckeye Power Inc. of Columbus, Ohio, has agreed to buy Allegheny's 9 percent equity interest and power rights in the corporation, according to an Allegheny press release.

Buckeye will pay $102 million in cash and become responsible for about $37 million of the electric corporation's debt under the agreement.

Other utility owners of the corporation declined to exercise their right of first offer from Allegheny and its subsidiary, Allegheny Energy Supply LLC.

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Under the agreement, Allegheny Energy Supply will retain the rights to 9 percent of the power, about 203 megawatts, until March 12, 2006.

Allegheny Energy and another subsidiary, Monongahela Power Co., own a 3.5 percent equity interest and power rights in the electric corporation that are not included in the Buckeye transaction.

Allegheny's headquarters formerly were near Hagerstown and the company still has offices here.

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