Allegheny Power 2015 Annual Report Download - page 3

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We maintained a strong focus in 2015 on achieving more regulated, customer-focused growth for your company.
Toward that end, we made significant investments to enhance the reliability and efficiency of our electric
system. These included $986 million in targeted improvements during the year to our transmission system,
and approximately $1.2 billion in capital upgrades that helped our regulated utilities continue to provide
reliable service to customers. We also received approval on a forward-looking rate filing for our American
Transmission Systems, Inc. (ATSI) transmission company, which will allow more effective and timely recovery
of its system investments.
Six of our regulated utilities received approval of settlements in distribution rate cases in 2015, and our
rate case in New Jersey also was resolved, resulting in an overall revenue increase of $321 million. In Ohio,
the Public Utilities Commission of Ohio (PUCO) is reviewing a settlement agreement with 17 key parties
supporting our Electric Security Plan IV (ESP) for The Illuminating Company, Ohio Edison and Toledo Edison.
The plan is expected to strengthen your company’s financial position in the years ahead and is designed
to provide significant benefits to our customers and communities – including more stable rates, a renewed
emphasis on energy efficiency and renewable power, and strong support for economic development. The
PUCO is expected to rule on the ESP by the end of March.
We also expect to achieve $240 million in annual savings by 2017 through our Cash Flow Improvement Project
– a comprehensive effort our employees conducted in 2015, and will closely monitor in the years ahead,
to reduce expenses and enhance revenue throughout our operations. In addition, we continue to execute
a more conservative strategy for our competitive generation business that minimizes risk while taking
advantage of market opportunities.
Charles E. Jones
President and Chief Executive Officer
A MESSAGE TO OUR
SHAREHOLDERS
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