FirstEnergy and Allegheny Energy Announce Senior Managers to Lead Organization Following Merger
FirstEnergy Corp. (NYSE: FE) and Allegheny Energy (NYSE: AYE) today announced the senior management team that will lead the combined organization following receipt of necessary regulatory approvals for the companies’ proposed merger. The organizational changes would be effective beginning the first day of combined operations.
“This management team will guide our new organization and work to ensure that the significant benefits of our merger are realized for employees, customers and shareholders,” said Anthony J. Alexander, president and chief executive officer of FirstEnergy. “At the same time, I want to thank the FirstEnergy executives who will be retiring during 2011 for their many decades of service to our company. They have been an integral part of our management team, and I appreciate all they have done for FirstEnergy and wish them many happy years in their retirements.”
Those retiring include Gary R. Leidich, executive vice president and president, FirstEnergy Generation, who joined the company in 1974; David C. Luff, senior vice president, Governmental Affairs, who joined the company in 1969; John E. Paganie, vice president, Customer Service and Energy Efficiency, who joined the company in 1969; Dennis J. Fuster, vice president, Project Construction, who joined the company in 1971; Ali Jamshidi, vice president, Commodity Operations, who joined the company in 1982; and Donald A. Brennan, regional president, Metropolitan Edison (Met-Ed), who joined the company in 1971. Retirements for most of these executives will occur throughout 2011, and their responsibilities until retirement will be determined by the respective unit executives.
As previously announced, Alexander will remain president and chief executive officer of FirstEnergy. Paul J. Evanson, chairman, president and chief executive officer of Allegheny, will become executive vice chairman of FirstEnergy, reporting to Alexander.
"Our new leadership team is well-qualified to complete the integration process and build value for shareholders," said Evanson. "I look forward to working with them."
Also reporting to Alexander will be Mark T. Clark, executive vice president and chief financial officer (CFO); Leila L. Vespoli, executive vice president and general counsel; Gary R. Leidich, executive vice president, Integration; James H. Lash, president, FirstEnergy Generation and chief nuclear officer (CNO); Charles E. Jones, president, FirstEnergy Utilities; and Lynn M. Cavalier, senior vice president, Human Resources.
Following completion of the merger, FirstEnergy Corp. will be the holding company of 10 electric utility distribution companies; FirstEnergy Nuclear Operating Company (FENOC); competitive subsidiary FirstEnergy Solutions Corp. (FES); and transmission operations subsidiaries. FirstEnergy distribution companies will serve six million customers throughout a 65,000-square-mile service territory in seven states. The company’s subsidiaries and affiliates will own or control nearly 24,000 megawatts of generating capacity.
Reporting to Executive Vice President and CFO Mark T. Clark will be Donald R. Schneider, president, FirstEnergy Solutions; James F. Pearson, vice president and Treasurer; Harvey L. Wagner, vice president, Controller and chief accounting officer; William D. Byrd, vice president, Corporate Risk and chief risk officer; Bennett L. Gaines, vice president, Corporate Services and chief information officer (CIO); Gary D. Benz, executive director, Business Development; and Thomas C. Burgess, executive director, Integrated System Planning and Development. Reporting to Wagner will be James G. Garanich, vice president, Tax.
FirstEnergy Solutions management, reporting to Donald R. Schneider, include Arthur W. Yuan, senior vice president, Retail Sales and Marketing; Kevin T. Warvell, vice president, Commercial Operations, Structuring and Pricing; James G. Mellody, vice president, Fuel and Unit Dispatch; and Tony C. Banks, vice president, Marketing Policies and E-Group. Reporting to Yuan will be Gerard J. Bellitt, vice president, Direct Sales.
Reporting to Vice President and Treasurer James F. Pearson will be Ronald E. Seeholzer, vice president, Investor Relations; and Kelley E. Mendenhall, vice president, Integrated Business and Financial Planning. Reporting to Seeholzer will be Irene M. Prezelj, executive director, Investor Relations.
Reporting to Vice President, Corporate Services and CIO Bennett L. Gaines will be John W. Judge, vice president, Supply Chain; Jennifer L. Fischer, vice president, Information Technology Solutions; and Ernest N. Maley, vice president, Information Technology Operations.
Reporting to Executive Vice President and General Counsel Leila L. Vespoli will be Michael J. Dowling, senior vice president, External Affairs; Robert P. Reffner, vice president, Legal; William R. Ridmann, vice president, Rates and Regulatory Affairs; and Rhonda S. Ferguson, vice president, Corporate Secretary and chief ethics officer.
In the External Affairs group, reporting to Senior Vice President Michael J. Dowling will be Gretchan E. Sekulich, vice president, Communications; Mary Beth Carroll, vice president, Corporate Affairs and Community Involvement; Martin L. Hall, vice president, Federal Affairs and Energy Policy; Joel D. Bailey, vice president, Local Affairs and Economic Development; and Ebony Yeboah-Amankwah, executive director, State Affairs.
Reporting to FirstEnergy Generation President and CNO James H. Lash will be Peter P. Sena, president and chief operating officer, FENOC; Charles D. Lasky, vice president, Fossil Fleet Operations; George J. Farah, vice president, Fossil Engineering and Construction; and Raymond L. Evans, executive director, Environmental. Reporting to Sena will be Danny L. Pace, senior vice president, Fleet Engineering; Karen Fili, vice president, Fleet Oversight; Mark B. Bezilla, site vice president, Perry Nuclear Power Plant; Paul A. Harden, site vice president, Beaver Valley Power Station; and Barry S. Allen, site vice president, Davis-Besse Nuclear Power Plant. Reporting to Lasky will be Frank A. Lubich, vice president, Central Fleet Operations; Frederick G. von Ahn, vice president, North Fleet Operations; and William H. Harker, executive director, Combustion Turbine/Hydro Operations.
Reporting to FirstEnergy Utilities President Charles E. Jones will be Mark A. Julian, vice president, Utility Operations, Ronald I. Green, vice president, Customer Service; John C. Dargie, vice president, Energy Efficiency; Bradley S. Ewing, vice president, Transmission; Stanley F. Szwed, vice president, Compliance and Regulated Services; and Steven E. Strah, vice president, Distribution Support. Reporting to Julian will be Dennis M. Chack, president, Ohio Operations; Douglas S. Elliott, president, Pennsylvania Operations; Donald M. Lynch, president, Jersey Central Power and Light; James R. Haney, president, West Virginia Operations; and James V. Fakult, president, Maryland Operations. Reporting to Chack will be Trent A. Smith, regional president, The Cleveland Electric Illuminating Company; Donald A. Moul, regional president, Ohio Edison Company; and Randall A. Frame, regional president, Toledo Edison Company. Reporting to Elliott will be David J. Karafa, regional president, Metropolitan Edison; John E. Skory, regional president, Pennsylvania Electric; and David W. McDonald, regional president, West Penn Power.
Reporting to Senior Vice President of Human Resources Lynn M. Cavalier will be Dennis L. Dabney, vice president, Human Resources; and Christine L. Walker, executive director, Human Resources.
The proposed merger of FirstEnergy and Allegheny Energy was announced February 11, 2010, and is expected to close in the first quarter of 2011. It has received approval from the Federal Energy Regulatory Commission, the Virginia State Corporation Commission and the Public Service Commission of West Virginia, and completed the U.S. Department of Justice review process. Shareholders for both FirstEnergy and Allegheny Energy overwhelmingly approved proposals related to the proposed merger. The companies also have proposed settlements pending with the Pennsylvania Public Utility Commission and the Maryland Public Service Commission.
INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS
In addition to historical information, this news release may contain a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Words such as anticipate, expect, project, intend, plan, believe, and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. Forward-looking statements relating to the proposed merger include, but are not limited to: statements about the benefits of the proposed merger involving FirstEnergy and Allegheny Energy, including future financial and operating results; FirstEnergy’s and Allegheny Energy’s plans, objectives, expectations and intentions; the expected timing of completion of the transaction; and other statements relating to the merger that are not historical facts. Forward-looking statements involve estimates, expectations and projections and, as a result, are subject to risks and uncertainties. There can be no assurance that actual results will not materially differ from expectations. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements. With respect to the proposed merger, these factors include, but are not limited to: the risk that FirstEnergy or Allegheny Energy may be unable to obtain governmental and regulatory approvals required for the merger, or required governmental and regulatory approvals may delay the merger or result in the imposition of conditions that could reduce the anticipated benefits from the merger or cause the parties to abandon the merger; the risk that a condition to closing of the merger may not be satisfied; the length of time necessary to consummate the proposed merger; the risk that the businesses will not be integrated successfully; the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers; the diversion of management time on merger-related issues; the effect of future regulatory or legislative actions on the companies; and the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect. These risks, as well as other risks associated with the merger, are more fully discussed in the joint proxy statement/prospectus that is included in the Registration Statement on Form S-4 (Registration No. 333-165640) that was filed by FirstEnergy with the SEC in connection with the merger. Additional risks and uncertainties are identified and discussed in FirstEnergy’s and Allegheny Energy’s reports filed with the SEC and available at the SEC’s website at www.sec.gov. Forward-looking statements included in this document speak only as of the date of this document. Neither FirstEnergy nor Allegheny Energy undertakes any obligation to update its forward-looking statements to reflect events or circumstances after the date of this document.
Ronald Seeholzer, 330-384-5415
Ellen Raines, 330-384-5808
Contacts for Allegheny:
Max Kuniansky, 724-838-6895
David Neurohr, 724-838-6020
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