Allegheny Power 2010 Annual Report Download - page 4
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As we took steps to secure the necessary
merger approvals, we continued to make
solid progress in strengthening the
performance of our business units and
our overall financial position.
With completion of the Air Quality Compliance
project at the W.H. Sammis Plant, we expect lower
capital expenditures in the future. In addition, we
produced $215 million in cash through the sale of
the Sumpter Plant in Michigan and a 6.65 percent
interest in the power generated by the facilities of the
Ohio Valley Electric Corporation. And, we continue
to evaluate opportunities to divest other non-core assets.
We increased our liquidity by more than $400 million.
We also completed a $350 million term loan agreement
for Signal Peak, the Montana coal mine in which
we have an equity investment, with the proceeds
used to pay down our revolving credit facility. In
addition, we refinanced or remarketed more than
$700 million of pollution control revenue bonds
and, importantly, generated approximately
$3.1 billion in cash from operations.
On the regulated side of our business, electricity
deliveries increased nearly 6 percent in 2010
compared with the previous year, reflecting the
moderate recovery of the economy and favorable
weather. Deliveries to industrial customers were
up 8 percent – primarily related to increased activity
in the steel, automotive and related industries – and
have recovered to about 90 percent of 2007’s
pre-recession levels. Residential usage was at its
highest level in nearly a decade, primarily due to
warmer-than-normal weather in the summer.
We also achieved solid results for transmission
and distribution reliability. In recognition of our
Producing Consistent
and Sustainable Results
outstanding reliability performance, we received
PA Consulting Group’s 2010 ReliabilityOne™ Award
in the Midwest Region.
We’re taking steps to further enhance the operational
performance of our competitive generating fleet. For
example, we announced plans to replace the reactor
head at the Davis-Besse Nuclear Power Station during
an outage scheduled for the fall of this year, accelerating
the original replacement timetable by almost three years.
4
Employees at our Customer Contact Centers handled more
than 10.8 million customer calls in 2010 – with three out of four
customers rating the interactions as excellent.
In addition, the Nuclear Regulatory Commission
accepted our application to renew Davis-Besse’s
operating license – an important step toward
keeping this asset productive for years to come.
We also lowered costs and enhanced our operating
flexibility by reducing operations at our smaller,
coal-fired plants located along Lake Erie. And, despite
our best efforts to overcome a number of challenges, we
cancelled plans to repower our R.E. Burger Plant with
biomass. These actions were taken in response to the
economy’s impact on power markets.