Gas News Release

June 24, 1999

Pennsylvania PUC Approves Dominion Resources/ Consolidated Natural Gas Merger

• Approval includes agreement to offer electricity in western Pennsylvania, freeze Peoples Natural Gas rates

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.

(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.)

CONTACTS:

Media

Mark Lazenby, Dominion Resources 804-819-2042

Chet Wade, Consolidated Natural Gas 412-690-1361

Analysts

Tom Wohlfarth, Dominion Resources 804-819-2150

Jim Garrett, Consolidated Natural Gas 412-690-1485