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Allegheny Energy, Inc. owns and operates electric generation facilities, and delivers electric services to customers in Pennsylvania, West Virginia, Maryland, and Virginia. The company owns or contractually controls coal, gas, and oil-fired generation facilities, as well as hydro generation facilities. It operates in two segments, The Merchant Generation and The Regulated Operations. The Merchant Generation segment owns, operates, and manages electric generation facilities, as well as purchases and sells energy and energy-related commodities. This segment markets its electric generation capacity to various customers and markets, including certain of its affiliates, as well as uses both derivative and nonderivative contracts to manage its portfolio of contracts. As of December 31, 2010, it owned or contractually controlled 7,015 megawatts of generation capacity. The Regulated Operations segment operates electric public utility systems that include electricity generation and transmission facilities.
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