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Allegheny Energy reports $18.4 million loss

July 30, 2005|By Daniel J. Sernovitz

Allegheny Energy Inc. reported a consolidated net loss of $18.4 million, or 12 cents per diluted share, for the second quarter, reduced from higher losses of $39.5 million, or 31 cents per share, last year, as the company seeks to recover from substantial debt and improve its stock rating from junk status.

Allegheny Chairman, President and Chief Executive Officer Paul J. Evanson said the earnings report indicates the company is advancing toward a more solid financial picture with decreasing expenses and solidly improving revenues from its core operations.

"Allegheny is well along the road to a complete and successful turnaround," he said during a conference call Friday morning provided by webcast through the company's Web site. "We are on track to achieving our goals, including becoming investment grade."

The Greensburg, Pa.-based utility company cited several factors influencing its losses for the quarter, including unplanned power outages at the company's Pleasants and Hatfield's Ferry power stations, unfavorable tax-law changes, and a $12.3 million loss on discontinued operations tied to the sale of some of its holdings.

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At the same time, the company reported improving conditions in its operations, including increased plant efficiency and deregulation in Maryland, which allowed the company to generate $24 million in increased revenues from rate increases.

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