Dominion to Streamline Corporate Structure by Merging CNG Subsidiaryinto Holding Company
RICHMOND, Va., May 31: Dominion (NYSE:D) announced today that it intends to merge its wholly owned subsidiary, Consolidated Natural Gas Company, into the parent holding company, Dominion Resources, Inc., as part of a move to streamline its corporate structure.
The merger is targeted for the second to third quarter of the year. Dominion will then assume all obligations related to CNG debt, as well as any other financial obligations such as guarantees. Also, first-tier CNG subsidiaries will become first-tier Dominion subsidiaries instead of second- tier subsidiaries.
Thomas F. Farrell II, chairman, president and chief executive officer, said:
"This move will simplify our corporate structure and help us operate more efficiently. It will reduce the number of legal filings, save audit expenses and enable us to conduct all public financing activities through two entities - Dominion Resources, Inc. and Virginia Electric and Power Company - instead of three. As we divest E&P assets this year, it is an appropriate time to take this simplifying step."
Dominion is one of the nation's largest producers of energy, with a portfolio of about 26,500 megawatts of generation, about 6.5 trillion cubic feet equivalent of proved natural gas reserves and 7,800 miles of natural gas transmission pipeline. Dominion also owns and operates the nation's largest underground natural gas storage system with about 960 billion cubic feet of storage capacity and serves retail energy customers in 11 states. For more information about Dominion, visit the company's Web site at http://www.dom.com/.
Source: Dominion
CONTACT: Media, Dan Donovan Dominion, +1-412-951-1080, ddonovan@dom.com, or Analysts, Fiona McCarthy, +1-804-819-2447, Fiona.R.McCarthy@dom.com
Web site: http://www.dom.com/
