AEP Completes Purchase Of Monongahela Power´s Ohio Assets From Allegheny Energy

Columbus, OH - American Electric Power, through its Columbus Southern Power (CSP) utility subsidiary, completed the purchase of Monongahela Power Company´s Ohio operations Dec. 31. Monongahela Power is a subsidiary of Allegheny Energy.

The purchase price was approximately $46 million, subject to post-closing adjustments. In addition, CSP will pay Allegheny $10 million associated with the termination of certain litigation.

Through the purchase, AEP acquired 29,000 Monongahela Power customers in six southeastern Ohio counties and all transmission and distribution assets located in Ohio serving those customers. The sale also includes a power purchase agreement under which Allegheny will provide AEP 100 percent of its power requirements to serve the retail load in this area through May 31, 2007.

AEP Ohio provides electricity to 1.4 million customers of major AEP subsidiaries Columbus Southern Power Company and Ohio Power Company in Ohio, and Wheeling Power Company in the northern panhandle of West Virginia. AEP Ohio is based in Gahanna, Ohio, and is a unit of American Electric Power.

SOURCE: American Electric Power