Dominion, Equitable Extend Sale Agreement For Natural Gas Utilities
RICHMOND, Va. – Dominion (NYSE:D) announced today that an agreement to sell two natural gas utilities to Equitable Resources (NYSE: EQT) has been extended at least until September 1, 2007. Prior to this agreement, either party could have unilaterally ended the agreement after June 30, 2007.
Dominion and Equitable also agreed to further extend the termination date until November 1, 2007, if they are able to reach an agreement to close the sale of Dominion Peoples earlier than the sale of Dominion Hope.
The sale of Dominion Peoples has been approved by the Pennsylvania Public Utility Commission. A decision is expected in September by the 3rd U.S. Circuit Court of Appeals on an appeal by the Federal Trade Commission asking to delay the sale of Dominion Peoples subject to further FTC review. A U.S. District Court judge previously turned down that request.
The sale of Dominion Hope is under consideration by the West Virginia Public Service Commission.
Dominion and Equitable announced on March 2, 2006, that Equitable would pay about $970 million plus adjustments to reflect capital expenditures and changes in working capital for the two utilities. Dominion has previously announced that it plans to use the proceeds from the sale to reduce debt.
Dominion Peoples serves about 357,000 homes and businesses in western Pennsylvania from its headquarters in Pittsburgh. Dominion Hope serves 116,500 homes and businesses in West Virginia from its headquarters in Clarksburg, W.Va. Together, the utilities serve less than 12 percent of Dominion’s four million electric and natural gas local distribution customers.
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