Federal Energy Regulatory Commission Conditionally
Approves Dominion Resources, CNG Merger
Both Companies Expect Closure
in First Quarter
RICHMOND, Va. and PITTSBURGH –The Federal Energy Regulatory
Commission (FERC) voted today to conditionally approve the merger of Dominion
Resources Inc. (NYSE: D) and Consolidated Natural Gas Company (NYSE: CNG), the
companies announced.
The companies said today that they intend expeditiously
to file a response accepting the conditions. The U.S. Securities and Exchange
Commission is the only remaining governmental or regulatory body required to
approve the merger. SEC approval is expected by year’s end, and the merger is
expected to close during the first quarter.
Thos. E. Capps, chairman, president and chief executive
officer of Dominion Resources, and George A. Davidson Jr., chairman and chief
executive officer of CNG, said in a joint statement:
"We thank FERC for its quick action. Today’s decision
marks yet another significant accomplishment as we push ahead to create America’s
premier gas and electric company. The momentum is building and we are eager
to begin delivering the full benefits of the converging energy marketplace to
our customers, shareholders, employees and communities."
The merger has been approved by shareholders of both companies
and regulators in Virginia, Pennsylvania, Ohio, North Carolina and West Virginia.
The Federal Trade Commission (FTC) has also cleared the merger.
The Dominion Resources/CNG merger will create the nation's
largest fully-integrated energy company. The merged company will serve about
4 million electric and natural gas customers in five states. It will have about
20,000 megawatts of electric generating capacity and will operate North America's
largest natural gas storage system. The merged company also will be one of the
largest independent oil and natural gas exploration and production companies
in North America, with more than 3 trillion cubic feet equivalent of reserves
in the United States and Canada.
This press release contains forward-looking statements.
The companies wish to caution readers that the assumptions which form the basis
for forward-looking statements with respect to or that may impact earnings for
fiscal 1999, and thereafter, include many factors that are beyond the companies’
ability to control or estimate precisely, such as estimates of future market
conditions and the behavior of other market participants. Other factors include,
but are not limited to, weather conditions, economic conditions in the companies’
service territories, fluctuations in energy-related commodity prices, conversion
activity, other marketing efforts and other uncertainties.
