Suffered from exact issue. Problem was because of NameValueSectionHandler in .config file. You should use AppSettingsSection instead:
<configuration>
<configSections>
<section name="DEV" type="System.Configuration.AppSettingsSection" />
<section name="TEST" type="System.Configuration.AppSettingsSection" />
</configSections>
<TEST>
<add key="key" value="value1" />
</TEST>
<DEV>
<add key="key" value="value2" />
</DEV>
</configuration>
then in C# code:
AppSettingsSection section = (AppSettingsSection)ConfigurationManager.GetSection("TEST");
btw NameValueSectionHandler is not supported any more in 2.0.