Electric co-op plans office in Warren

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REC to build in Kelley Industrial Park

By James Heffernan -- jheffernan@nvdaily.com

FRONT ROYAL -- The proposed sale of Allegheny Power's service areas in Virginia is still more than six months away, but one of the two electric cooperatives involved is already staking its claim.

Rappahannock Electric Cooperative plans to purchase the LeHew building in the Kelley Industrial Park for its new Blue Ridge district office, according to the local Economic Development Authority.

REC will invest $5.5 million in the property, which includes 30,000 square feet of office and warehouse space on 12 acres of land.

The move will bring 45 jobs, retaining a number of local Allegheny Power employees while creating other positions to serve REC's new members, the EDA said.

In May, Greensburg, Pa.-based Allegheny Power announced that it intends to sell its electric distribution operations in Virginia to REC and Shenandoah Valley Electric Cooperative. Both are member-owned, not-for-profit utilities.

Under the terms of the $350 million agreement, REC, headquartered in Fredericksburg, would serve Rappahannock County and parts of Clarke, Frederick, Page, Shenandoah and Warren counties. Mt. Crawford-based SVEC would pick up the remainder of Allegheny's local service area, including all of Winchester.

If the State Corporation Commission signs off on the deal, the transfer would take place in May 2010. A public hearing is scheduled for March 2 in Richmond.

REC customers will enjoy greater rate stability in the long term as a result of the transaction, "and we will gain additional well-trained and highly-qualified field employees," President and Chief Executive Kent D. Farmer says in a press release.

"Additional jobs will create new opportunities for our employees and communities," he says.

"We look forward to welcoming another community-oriented organization to our County," says Patty Wines, chairwoman of the local EDA. "In addition to their investment and job creation, we believe Rappahannock will be a good corporate neighbor."

Jeff LeHew, president of Via Satellite, a local DISH Network provider, is in the planning stages of building a similar facility on adjacent property in the Kelley Industrial Park, according to the EDA.

LeHew could not immediately be reached for comment Friday.