The firms believe that the company has aggressively and successfully pursued creation of shareholder value on multiple fronts. However, they prefer to remain on the sidelines due to the overhang of commodity prices and uncertainty over dilution/accretion from the pending merger with Allegheny Energy (AYE). The firms also believe that the price paid for Allegheny is too high given the high probability of concessions to ratepayers and uncertainty over timing of approvals. The firms also remain cautious based on their view on natural gas, which more than offsets potential upside from higher capacity revenues in Pennsylvania – New Jersey – Maryland regional transmission organization (PJM). Despite weak earnings, these firms believe that the company’s dividend is sustainable.