FirstEnergy (NYSE:(FE)) and Allegheny Energy, Inc. (NYSE:AYE) received an order from the Maryland Public Service Commission (MPSC) approving their merger with conditions that largely reflect the comprehensive settlement filed by the companies and the majority of parties to the case. The MPSC order provides a 30-day period for the companies to review and respond.
Maryland is the third of four state regulatory approvals needed to complete the merger. The companies previously received approvals from the Virginia State Corporation Commission and the Public Service Commission of West Virginia, and have a comprehensive settlement with the majority of parties to the merger application pending before the Pennsylvania Public Utility Commission. The merger also has received approval from the Federal Energy Regulatory Commission and completed the U.S. Department of Justice review process. Shareholders for both FirstEnergy and Allegheny Energy overwhelmingly approved proposals related to the merger.
The companies filed their merger application with the MPSC on May 27, 2010, and a comprehensive settlement with many of the parties on December 1, 2010. Parties signing the settlement include the State of Maryland; the Maryland Energy Administration; the Maryland Department of the Environment; the Utility Workers Union of America (UWUA), AFL-CIO; UWUA System Local No. 102; Maryland Industrial Customers; the Board of County Commissioners of Washington County, Maryland; the City of Hagerstown; the Town of Thurmont; and the Town of Williamsport.