Allegheny Power Acquisition
ARCHIVE OF ACQUISITION-RELATED COMMUNICATIONS TO NEW MEMBERS
Listed below, and available for download, are all communications that were distributed to former Allegheny Power customers before the acquisition and after the change-over became official on June 1.
- Newspaper Feature: Social Responsibility -- "Co-ops make social responsibility look easy because it’s at the heart of what they do." Appeared in local newspapers the week of June 28, 2010.
- Newspaper Feature: Openness -- "As a cooperative member-owner you have democratic control and can impact the future of your cooperative." Appeared in local newspapers the week of June 21, 2010.
- Newspaper Feature: Honesty -- "Co-ops don’t have to answer to shareholders; they care more about
meeting their members’ needs." Appeared in local newspapers the week of June 14, 2010.
- Member Benefits Booklet -- Detailed description of all member benefits. Included in Member Welcome Packet. Mailed June 9, 2010.
- Outage Contact Number -- Phone number for members to use when reporting an outage. Included in Member Welcome Packet. Mailed June 9, 2010.
- Easy Phone Guide -- Instructions for using REC's automated phone system. Included in Member Welcome Packet. Mailed June 9, 2010.
- Co-op Connections® Brochure -- Provided details on REC's free, card-based, retail discount program for members. Included in Member Welcome Packet. Mailed June 9, 2010.
- Home Resources Brochure -- Provided details on REC's line of products and services for members.Included in Member Welcome Packet. Mailed June 9, 2010.
- Operation Round Up® Brochure -- Described the charitable program that gives members the opportunity to contribute to worthy causes and indiviuals in their communities. Included in Member Welcome Packet. Mailed June 9, 2010.
- New Member Reply Card -- Response card used by new members to request additional information on various REC programs and services. Included in Member Welcome Packet. Mailed June 9, 2010.
- Bill Insert: It's Official -- Welcome message announcing completion of the acquisition effort. Included with the first REC bills received by former customers of Allegheny Power. Sent in June and July of 2010.
- Newspaper Feature: Caring -- "Co-ops employ and serve people who live in the community." Appeared in local newspapers the week of June 7, 2010.
- Newspaper Announcement: It's Official -- Provided notice that REC had assumed it acquisition-related service responsibilities. Appeared in local newspapers on June 1, 2010.
- Welcome Letter From REC -- A message from REC President and CEO Kent D. Farmer. Mailed May 24, 2010.
- Contact Information -- A card with contact information for REC's main office and all district offices. Mailed May 24, 2010 with the Welcome Letter from REC.
- Newspaper Feature: Cooperative Principle 7 -- Talked about the concern for community shared by all cooperatives. Appeared in local newspapers Aug. 22 - Aug. 27, 2009.
- Newspaper Feature: Cooperative Principle 6 -- Described the cooperation among various cooperatives. Appeared in local newspapers Aug. 15 - Aug. 20, 2009.
- Newspaper Feature: Cooperative Principle 5 -- Featured the public education and training provided by cooperatives. Appeared in local newspapers Aug. 8 - Aug. 13, 2009.
- Newspaper Feature: Cooperative Principle 4 -- Detailed the autonomy and independence of cooperatives. Appeared in local newspapers Aug. 1 - Aug. 20, 2009.
- Newspaper Feature: Cooperative Principle 3 -- Highlighted cooperative members' economic participation. Appeared in local newspapers July 25 - Aug. 6, 2009.
- Newspaper Feature: Cooperative Principle 2 -- Explained the democratic member control of cooperatives. Appeared in local newspapers July 18 - July 23, 2009.
- Newspaper Feature: Cooperative Principle 1 -- Discussed the open membership aspect of cooperatives. Appeared in local newspapers July 10 - July 16, 2009.
- Allegheny Power Bill Insert -- Announced the acquisition effort to Allegheny Power customers. Mailed October/November 2009.
May 17 update — The Virginia State Corporation Commission has given final approval allowing Rappahannock and Shenandoah Valley Electric Cooperatives to acquire the Virginia distribution assets of Allegheny Energy, Inc. The cooperatives will assume service responsibilities on June 1. Read the full media release. Review a list of frequently asked questions for the new territory.
April 28 update— Executives from REC, Shenandoah Valley Electric Cooperative, and Allegheny Energy, Inc. have reached a stipulation agreement concerning the acquisition of Allegheny Energy’s Potomac Edison distribution assets in Virginia. Read the full media release.
March 11 update — The public hearing into the Allegheny acquisition conducted by the Virginia State Corporation Commission (SCC) concluded on March 8. Testimony will now be weighed by the SCC in making a final determination.
Feb. 12 update — In a filing with the State Corporation Commission, REC and Shenandoah Valley Electric Cooperative respond to a consultant's conclusions about the acquisition. Read the media release. Read the rebuttal testimony.
Feb. 2 update — REC and SVEC respond to a report examining the acquisition, which was issued by the State Corporation Commission's consultant. Read the entire media release.
Nov. 5 update — REC makes plans for its new Blue Ridge District Office.
Oct. 13 update — The Virginia State Corporation Commission has announced its schedule for considering the purchase of Allegheny Power. Review the official notice for more details about this timeline:
Nov. 6, 2009 — Official notice to public and local governments
Dec. 1, 2009 — Notice of Intent to Participate
Jan. 8, 2010 — Participant pre-filed
Jan. 29, 2010 — SCC staff report
Feb. 23, 2010 — Public comments
March 2, 2010 — Public hearing
Pending approval by the Virginia State Corporation Commission, REC and Shenandoah Valley Electric Cooperative (SVEC) are poised to serve all Virginia customers of Pennsylvania-based Allegheny Power. On May 5 the two cooperatives announced the success of their negotiations to purchase and equitably divide Allegheny's distribution assets in Virginia.
REC will grow to serve portions of Clarke, Frederick and Warren counties. The new territory will also include additional areas of the 16 counties where the Cooperative currently operates. The remaining half of Allegheny's customers will be served by SVEC. (See the maps below.)
Both Cooperatives have more than 70 years experience serving rural and suburban members and are well known for their commitment to the communities and member-owners they serve. REC and SVEC will benefit from improved economies of scale, increased ratio of meters-per-mile of line, and the addition of well-trained, experienced, and highly qualified employees. The cooperatives plan to purchase wholesale electricity for the new customers from the cooperatively-owned Old Dominion Electric Cooperative, which will contribute to stabilized rates.
REC's post-acquisition profile is projected to look like this:
- Service area - increasing from 16 to 19 counties
- Meters - 148,000 (up from 98,000)
- Miles of line - 15,640 (slightly more than 3,000 additional miles)
- Meters per mile of line - 9.4 (versus the current 7.8)
- Employees - 385 (with most of the 75 new workers coming from Allegheny Power)
- Annual revenue - $412 million (increasing from $283.7 million)