Press Release

PUC Votes to Move Forward with Examination into Possible Change of Control of NFG

Published on 12/20/2007

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to proceed with an examination into the possible change of control of National Fuel Gas Distribution Corp. and the actions of New Mountain Vantage (NMV) and others acting in concert with NMV.

“The Commission has examined (the Public Utility Code) and determined that the transfer of stock or other voting interest of a utility’s parent is jurisdictional regardless of the remoteness of the transaction if the effect of the transaction is to change control of a utility,” said Commission Vice Chairman James H. Cawley in a motion that ordered the inquiry to proceed. “Protecting the public interest and ‘maximizing shareholder value’ may not always be complementary goals."

The Commission voted 4-0 to deny NMV’s preliminary objections and evaluate answers to a petition by NFG requesting that the PUC investigate NMV to determine if the company violated the Public Utility Code by acquiring control of NFG and whether or not NMV and others acting in concert with them should be required to apply for a certificate of public convenience, which is required for operation as a public utility Pennsylvania.

NFG serves about 210,000 natural gas customers in Armstrong, Butler, Cameron, Clarion, Clearfield, Crawford, Elk, Erie, Forest, Jefferson, McKean, Mercer, Venango and Warren counties.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket No. P-00072343

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