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Allegheny Energy Inc., a Greensburg, Pa.-headquartered investor-owned electric utility, has contracted with Kenny Construction Co. to provide construction management and other services for a proposed 500 kV transmission line.

Under the terms of the agreement, Kenny Construction will be responsible for engineering, designing, constructing and testing the new transmission line and all substations. Targeted for completion in 2011, the line will span about 210 miles of Allegheny's service territory from southwestern Pennsylvania through West Virginia to northern Virginia, to strengthen the reliability of the power grid serving the mid-Atlantic region.

According to Allegheny Energy, the project will increase the potential for new generation projects, including wind power. The company plans to file applications for the $820 million transmission line with the respective utility commissions in the states crossed by the line in the spring.

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