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Name and title: David M. Feinberg, vice president and general counsel Age: 36 Company profile: Allegheny Energy Inc. is an investor-owned utility that provides electricity from coal-fired power plants to 1.5 million people in Pennsylvania, West Virginia, Maryland and Virginia. The company has been returning to good financial health lately after going through the corporate version of midlife crisis that peaked three years ago. Allegheny, which in various manifestations has been generating and delivering electricity since the 1880s, was among the utilities that fell under the grip of the energy deregulation fever during the first years of this century. It went from the plodding pace of a regulated utility to the sprint of a fast-growing energy producer and trader like the much-admired, precollapse Enron Corp. Beginning in 2001, Allegheny purchased an energy trading company from Merrill Lynch & Co., built natural gas-fired generating plants and plunged into the power market in the Western states, particularly California. By 2003, Allegheny was losing money rapidly, struggling with $5.9 billion in debt and teetering on the edge of bankruptcy. In mid-2003, a new management team, led by Paul J. Evanson, took charge. The company got out of the wholesale electricity market out West and has been paring costs, reducing its debt-down to $3.6 billion-and concentrating on its core business of turning coal into electricity and delivering it to customers in its sprawling service area. Allegheny also has been selling off its real estate and natural gas power plant holdings. In 2005, Allegheny sold a 512-megawatt generating station for $100 million and reportedly has agreed to sell its West Virginia natural gas operations for $217 million. Allegheny has returned to profitability since its nadir. Sales in 2005 topped $3 billion, up 10.2% from the year before, and net income totaled $63.1 million. Cost cutting remains a top management objective. In 2005, Allegheny reduced its work force by 12.5%, to 4,460 employees. Legal department and outside counsel: Feinberg leads a legal department of 20 attorneys with specialties in state and federal regulation, labor and employment, securities, finance and transactions. “We have various people to fit the various business needs,” he said. Allegheny’s unsuccessful energy trading ventures resulted in a number of lawsuits. The largest of these involves the appeal of a $115 million summary judgment won by Merrill Lynch in the lawsuit stemming from the sale of the energy trading company. “Between 2001 and mid-2003, before the new management team took over, the company bought the energy trading business from Merrill Lynch and some [natural] gas plants. We got into that whole deregulation excitement. Allegheny tried to expand and it didn’t work. The company was nearly in bankruptcy in 2003,” Feinberg said. “Litigation just came out of the situation. We have some securities lawsuits and trading cases that we have settled that go back to that period, before the current management team was in place, and we have litigation against Merrill Lynch. Over the last couple of years we have tried to clean that up but we still have legacy cases.” The legal department is gradually shifting attention from litigation to regulation and negotiation as Allegheny moves forward with major capital projects. The company plans an $850 million, 210-mile transmission line that will snake through parts of Pennsylvania, West Virginia, Maryland and Virginia. Also in the works are costly environmental upgrades to two coal plants. The projects require the law department to resolve regulatory, contractual and financing issues, Feinberg said. “Over time, the legal department will be more focused on helping the business achieve its goals rather than resolving these legacy cases,” Feinberg said. “The litigation is not distracting us from doing what we need to do to move forward with our business.” Allegheny uses about 50 firms for various legal chores, but the bulk of the business goes to four firms. The Pittsburgh office of Kirkpatrick & Lockhart Nicholson Graham handles litigation and securities. Morgan, Lewis & Bockius, through its offices in Pittsburgh, Washington and Philadelphia, tends to litigation, labor and employment issues. Financial and regulatory matters are assigned to attorneys in Skadden, Arps, Slate, Meagher & Flom’s New York headquarters and Washington office. Jackson Kelly of Charleston, W.Va., handles in-state litigation and in-state regulatory work. Daily duties: Feinberg reports to Evanson, the chief executive officer. Two deputy general counsel-one overseeing Allegheny’s power plants, the other responsible for the transmission and delivery business-report to him directly. Individual attorneys charged with securities and corporate governance also report to him. His typical workday is structured around some formal meetings and lots of informal meetings with both his staff and the Allegheny executive team. Easy interaction is encouraged by Evanson, who consolidated the business units and executive offices under the same roof early in his tenure as CEO. “It’s important for the businesspeople to be near the legal people,” Feinberg said. “We talk all the time. The rest of the senior management team is often in my office and I go around to them, so we all have a good understanding of what’s going on. The goal of the management team here is [that] when there are legal or compliance issues, get it solved before it becomes a problem.” Route to present position: Feinberg earned bachelor’s degrees in psychology and mechanical engineering from the University of Pennsylvania before heading to Harvard Law School, where he graduated magna cum laude in 1995. Following law school, he clerked for Judge Joel Flaum of the 7th U.S. Circuit Court of Appeals. Feinberg joined Chicago-based Jenner & Block in 1996 and made partner before leaving to oversee litigation at Allegheny Energy in August 2004. He was named general counsel in October 2006. Personal: Feinberg’s main hobby is golf-or at least it was before he and his wife, Felicia, had twin daughters, Sofia and Ella, age 3. “They’re pretty much all over me from the minute I get home,” he said. Last book and movie: Angels and Demons, by Dan Brown, and Little Miss Sunshine.

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