Allegheny Energy Inc. is poised to become the third public utility to hit the market with a stranded cost securitization, following the earlier-than-expected approval of the plan by the Pennsylvania Public Utility Commission.

Already, Allegheny Energy, which has $670 million in recoverable stranded costs, has filed with the Securities and Exchange Commission to price a deal, most likely in the $500 million to $600 million range, a company official said. The offering could come as soon as the end of the month.

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