Pennsylvania PUC Approves Dominion Resources/Consolidated
Natural Gas Merger
Approval Includes Agreement to Offer Electricity
in Western Pennsylvania, Freeze Peoples Natural Gas Rates
RICHMOND, Va., and PITTSBURGH -- The Pennsylvania Public
Utility Commission (PUC) today approved the merger of Dominion Resources Inc.
(NYSE: D) and Consolidated Natural Gas Company (NYSE: CNG), the companies announced.
Thos. E. Capps, chairman, president and chief executive officer
of Dominion Resources, and George A. Davidson Jr., chairman and chief executive
officer of Consolidated, said in a joint statement:
"This is an important milestone in our plans to create America's
premier electric and natural gas company. It is also an important milestone
for Pennsylvania, because the combined company will help bring the benefits
of increased competition to the deregulated electric and natural gas markets
of the Commonwealth. We commend PUC Chairman John Quain and the other commission
members for their leadership in opening Pennsylvania's energy markets and for
their prompt action in approving our merger."
Pennsylvania, which is home to CNG and its Peoples Natural
Gas Company utility, is the first state to approve the merger. Applications
are pending in Virginia, West Virginia and North Carolina, as well as with several
federal agencies.
"We remain on track to receive all necessary approvals and
close the merger by the end of the year," Capps and Davidson said.
As part of the approval process, the companies reached a
significant agreement with the Pennsylvania Office of Consumer Advocate that
will benefit consumers. As part of the agreement, after the merger is completed
Dominion and CNG will:
Offer electricity under Pennsylvania's "Electric Choice"
program to eligible residential customers in the 16 western Pennsylvania counties
served by Peoples Natural Gas. This includes the service areas of Duquesne Light,
Allegheny Power, Penelec and Penn Power.
Freeze base rates of Peoples Gas until at least 2003.
"This agreement clearly spells out the kinds of benefits
we foresee for customers in the communities we now serve and the communities
we will serve in the future," Capps and Davidson said.
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This release contains forward-looking
statements that are subject to various risks and uncertainties. Discussions
of factors that could cause actual results to differ materially from managements'
projections, forecasts, estimates and expectations are contained in the Companies'
Securities & Exchange Commission filings.
