Press Release

PUC Approves Agreement for Dominion Peoples Sale to Peoples Hope Gas Cos.

Published on 11/19/2009

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement for the sale of Dominion Peoples Natural Gas Co. to Peoples Hope Natural Gas Cos.

The Commission voted 5-0 to approve the settlement which was reached among the companies, the Office of Consumer Advocate and the Office of Small Business Advocate. The Commission found that the settlement was in the public interest and provided substantial public benefits. Vice Chairman Tyrone J. Christy and Commissioner Robert F. Powelson issued a statement.

Dominion Peoples provides natural gas service to about 360,000 homes in central and southwestern Pennsylvania. Peoples Hope is an indirect subsidiary of SteelRiver Infrastructure Fund North America LP.

The settlement includes specific commitments to:

• Apply a $35 million base rate credit over three years beginning with the next base rate case;
• Cap existing base rates until Jan. 1, 2011;
• Improve funding for low-income programs including $300,000 for Hardship Funds and $768,000 for its Low-Income Usage Reduction Program;
• Improve customer service;
• Return customer service functions to Pennsylvania, creating Pennsylvania-based jobs and producing better customer service by employees more familiar with Pennsylvania standards;
• Return senior management functions to Pennsylvania, coupled with a commitment to maintain the company headquarters in or near Pittsburgh for at least 10 years;
• Provide pension security for employees and retirees; and
• Insulate PNGC from activities of the parent company’s other investments.

On Sept. 18, 2008, the companies filed a joint petition for the sale of Dominion Peoples to Peoples Hope. On Oct. 16, 2009, a PUC Administrative Law Judge rejected the settlement. Dominion Peoples and Peoples Hope asked the Commission to consider approving the settlement.

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 website at www.puc.state.pa.us.

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Docket No. A-2008-2063737

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