Dominion Closes On Sale of Dominion Peoples for $780 Million

RICHMOND, Va., Feb. 1 /PRNewswire-FirstCall/ -- Dominion (NYSE: D) today announced it has closed on the sale of Dominion Peoples, its Pennsylvania natural gas distribution company, to PNG Companies LLC, an affiliate of SteelRiver Infrastructure Fund North America.  

The purchase price is approximately $780 million, adjusted for changes in working capital and levels of capital expenditures and affiliate borrowings, under an agreement announced on July 2, 2008. As previously stated, Dominion plans to use after-tax proceeds, approximately $542 million, to reduce debt.

Thomas F. Farrell II, Dominion chairman, president and chief executive officer, said: "We thank our Dominion Peoples employees for their service with Dominion. We are not leaving Pennsylvania by any means. We are expanding our large natural gas transportation and storage system in the state to handle the influx of gas from the Marcellus Shale and other new sources.  We are increasing our marketing of natural gas and electricity in non-regulated markets, supplying more than 400,000 customers in Pennsylvania. And we recently increased the generating capacity of the Fairless Energy Center in Bucks County."

Dominion Peoples serves about 359,000 residences and businesses in Pennsylvania from its headquarters in Pittsburgh.

Dominion engaged McGuireWoods LLP and Hawke McKeown & Sniscak LLP to provide legal services, and Goldman Sachs as its financial advisor in the transaction.

Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of more than 27,500 megawatts of generation, 1.2 trillion cubic feet equivalent of proved natural gas reserves, 12,000 miles of natural gas transmission, gathering and storage pipeline and 6,000 miles of electric transmission lines. Dominion operates the nation's largest natural gas storage system with 941 billion cubic feet of storage capacity and serves retail energy customers in 12 states. For more information about Dominion, visit the company's Web site at www.dom.com

SOURCE Dominion

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