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Greensburg, Pa.-based Allegheny Energy Inc. has announced that the Federal Energy Regulatory Commission (FERC) has approved a settlement agreement that establishes formula rates for the proposed Trans-Allegheny Interstate Line (TrAIL) and other related transmission projects.

The settlement agreement, filed earlier this year by Allegheny Energy's subsidiary, Trans-Allegheny Interstate Line Co. (TrAILCo), includes the following:

- an incentive return on equity rate of 12.7% for the TrAIL project,

- an incentive return on equity rate of 12.7% for the static volt ampere reactive compensator installed at the existing Black Oak Substation, and

- a return on equity rate of 11.7% for any other projects TrAILCo may undertake for which no incentive return has been requested.

According to TrAILCo, project benefits for West Virginia and southwestern Pennsylvania include the potential for new generation projects, including clean-coal technologies and renewables, such as wind and hydro.

The settlement agreement, called "fair and reasonable and in the public interest" by FERC in its order, resolves all issues associated with establishing the transmission cost of service formula for TrAILCo.

SOURCE: Allegheny Energy Inc.



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