After increasing the estimated construction costs for building an emissions control facility at a West Virginia plant, and adding a novel twist to the deal's structure, Allegheny Energy, Inc. received approval from the Public Service Commission of West Virginia to use asset-backed securities to finance the project.

The ratepayer-backed deal now calls for Allegheny Energy to issue $466.5 million in ABS bonds, which will finance the construction of equipment to remove sulfur dioxide from coal burning emissions at its Fort Martin Power Station near Maidsville, W. Va. The so-called scrubber technology will bring the plant, built in 1960, into compliance with the Environmental Protection Agency's latest emissions control rule. The EPA's Clean Air Interstate Rule calls for 28 states and the District of Columbia to reduce nitrogen oxides and sulfur dioxide emissions from power plants by 2015.

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