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Gas News Release
September 9, 1999
Public Utility Commission of Ohio Supports Dominion Resources/Consolidated
Natural Gas Merger
RICHMOND, Va., and PITTSBURGH -- The Public Utility Commission
of Ohio has filed a statement with the federal Securities and Exchange Commission
(SEC) supporting the merger of Dominion Resources Inc. (NYSE: D - news) and Consolidated
Natural Gas Company (NYSE: CNG - news), the two companies announced today.
The Ohio commission told the SEC that the agency would continue
to exercise jurisdiction over the regulated activities of The East Ohio Gas
Company, CNG's natural gas distribution company in Ohio, and that the merger
would have no impact on its ability to protect the interests of Ohio ratepayers.
The Ohio commission is not required to approve the merger but conducted a structural
review at the request of East Ohio Gas.
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 believe our merger will provide substantial benefits
to the state of Ohio. This is a merger about growth, and Ohio will play an important
role in our expansion plans. We thank the Ohio commission for its timely review
and support of our merger plan."
The merger has been approved by public utility commissions
in Pennsylvania and West Virginia, as well as shareholders of both companies.
Still pending are decisions by Virginia and North Carolina public utility commissions
and several federal agencies.
"We continue to work toward being in a position to close
the merger by the end of the year," Capps and Davidson said.
CNG has more than 2,200 employees and approximately 1.2 million
natural gas customers in Ohio. The merged company plans to participate in unregulated
markets for both natural gas and electricity in Ohio. Dominion Resources and
CNG have also announced plans to build two $200 million gas-fired electric power
generation facilities in Ohio to supply electricity during periods of peak need.
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.
Dominion Resources expects SEC approval of its plan to have
CNG remain a wholly-owned subsidiary.
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This press release contains forward-looking statements. The
companies wishes 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 territory, fluctuations in energy-related commodity prices, conversion
activity, other marketing efforts and other uncertainties.
CNG's recent news releases are available 24 hours a day on
the Internet, by fax machine, or by voice recording. On the Internet, use CNG's
Web site: www.cng.com. For faxing, call 1-800-758-5804 on a touch-tone phone
and enter CNG's extension number, which is 203456. From a menu, you will then
be able to select releases that will be faxed to you immediately without charge.
For voice recordings, call 1-888-CNG-NEWS. This line is toll-free.
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For further information contact:
Dan Donovan
412-690-1370
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