Allegheny Energy, which is preparing a $466 million transaction to finance the costs of construction on an emissions control facility at a West Virginia plant, recently specified the amount of registered bonds to be issued under one portion of its planned transaction.

In an amendment filed with the Securities and Exchange Commission (SEC) about two weeks ago, Allegheny Power, based in Greenburg, Pa., specifies that the special-purpose subsidiary called MP Environmental Funding will be registered to issue about $350 million in senior secured debt. The proceeds from the issuance will finance construction of equipment to remove sulfur dioxide from coal burning emissions at the Fort Martin Power Station near Maidsville, West Virginia. Not only will the deal allow Allegheny to recoup actual construction costs through the bond financing, but it can also recoup actual construction costs that exceed $450 million during the period prior to construction.

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