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&lt;p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;NOTE
14:&amp;#xA0;&amp;#xA0;PURCHASE OF HYDROELECTRIC GENERATION
FACILITIES&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"&gt;
&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;In December
2009, Allegheny purchased two hydroelectric generation facilities
located at Allegheny Lock and Dam 5 and 6 in Freeport, PA with a
nominal maximum generation capacity of 13 MW.&amp;#xA0;This purchase
effectively settled existing power purchase agreements under which
Allegheny purchased the power generated by these facilities through
2034.&amp;#xA0;Accordingly, at the transaction closing date, Allegheny
recorded a credit to purchased power expense in the amount of $10.6
million, representing the fair value of the power agreements at
that date.&amp;#xA0;The purchase of the facilities was accounted for as
a business combination for which the total consideration was $12.6
million consisting of a cash payment of approximately $2.0 million
plus the fair value of the power purchase agreements.&amp;#xA0;The fair
value of the net assets acquired exceeded the total consideration
paid by $6.7 million, representing a bargain purchase that was
credited to operations and maintenance expense.&lt;/font&gt;&lt;/p&gt;
&lt;/div&gt;</NonNumbericText>
          <NonNumericTextHeader>NOTE
14:&amp;#xA0;&amp;#xA0;PURCHASE OF HYDROELECTRIC GENERATION
FACILITIES

In December
2009, Allegheny purchased two hydroelectric generation facilities
located at</NonNumericTextHeader>
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