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Allegheny Energy reports increase in net revenue

April 30, 2005|by DANIEL J. SERNOVITZ

Aided by Maryland's switch to market-based rates, Allegheny Energy reported a 27.93 percent increase in net revenue for the first quarter of the year.

Starting Jan. 1, business and industrial customers within Allegheny's service area in Maryland were able to shop for electricity suppliers, though they still must pay Allegheny for the delivery of that power.

As a result, Allegheny increased its Standard Offer Service rates to those business and industrial customers that stayed with the company by between 23 percent and 51 percent, depending on the amount of electricity they use. Those increases exclude customers just using electricity for lighting purposes only.

According to the Greensburg, Pa.-based company's first-quarter report, released Thursday, Allegheny's net income rose from $33.3 million, or 25 cents per diluted share, in the first quarter of 2004 to $42.6 million, or 29 cents per diluted share, for the first quarter of this year.

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Allegheny spokesman Fred Solomon said the company realized $21 million in additional revenue within Maryland as a result of deregulation and increased rates charged to the business and industrial customers who stayed with the company under Standard Offer Service.

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