GLOBAL CLIMATE DEBATE

FirstEnergy To Buy Rival Allegheny

A merger of two giant electric utilities will create one of the nation's largest power companies.

Akron, Ohio, based FirstEnergy says it will buy Greensburg, Pa., based Allegheny Energy for about $4.7 billion in stock.If the deal closes as expected by mid-2011, the result would be a single company serving more than 6-million customers in Pennsylvania, Ohio, Maryland, New Jersey, New York, Virginia and West Virginia.

Analysts say its annual revenue will be about $16 billion, with some $1.4 billion in profit.

The companies say the deal will improve the mix of power generation at a time when regulations on pollution, including carbon dioxide, are expected to get tougher.  Allegheny depends on coal for much of its generation. FirstEnergy relies on nuclear power along with coal, natural gas and renewable sources.

They say 80 percent of the generation from the combined company will come from nuclear power and super-efficient coal plants.

Allegheny President and CEO Paul Evanson, who will be executive vice president of the new company, says coal will be continue to be an important part of the country's energy future. "But with the overhang of climate change, when you have a fleet of just one fuel you also have the potential for downside," he said.