Press Release

PUC Approves Reorganization of Equitable Resources Inc.

Published on 5/22/2008

Filed under: Gas

Harrisburg – The Pennsylvania Public Utility Commission (PUC) today approved the application for the reorganization of Equitable Resources Inc. into a holding company structure with the Equitable Gas Company Division becoming a separate legal entity.

The Commissioners voted to approve a Motion by Chairman Wendell F. Holland to consider and approve the reorganization.

“The proposed corporate reorganization, along with certain modifications adopted today, is clearly in the public interest,” said Chairman Holland.  “By putting Equitable Gas into its own separate legal entity, additional protection and benefits will be realized by the ratepayers.  These benefits include possibly lowering or holding the line on borrowing costs, which in turn keep rates down for customers.”

In approving the reorganization, the Commission also adopted a Supplement to the Application that provided for additional conditions to the Application.  The Supplement to the Application was agreed upon by the Office of Small Business Advocate (OSBA), the Office of Consumer Advocate (OCA) and the Office of Trial Staff (OTS).  The Commission also granted the Application contingent upon conditions proposed by the Independent Oil and Gas Association of Pennsylvania (IOGA), with one exception.  The question of what constitutes utility property will be determined in Equitable Gas Company Division’s next base rate proceeding.

Equitable Resources states that the new organizational structure will better segregate its regulated natural gas utility business from its unregulated businesses and the associated risks.  Equitable adds that the new organizational structure will allow Equitable Gas to better respond to the changing circumstances in the natural gas industry.

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. A-12100F0006; G-20071218

Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov