Comprehensive Settlement with FirstEnergy and Allegheny Energy in Merger Case

FirstEnergy Corp.

and Allegheny Energy, Inc.

, along with ten parties to their merger proceeding in Maryland, today filed with the Maryland Public Service Commission a comprehensive settlement that addresses issues raised in the case. The settlement enhances commitments made in the initial merger application and includes customer credits of $6.5 million – a $4 million increase over the initial filing – to be provided over four years to Potomac Edison's residential electric distribution customers. It also maintains the companies' commitment to locate a regional headquarters in Potomac Edison's Maryland service territory, and includes reliability enhancements and support for the development of new renewable energy resources in the state.