RICHMOND, Va., Jan. 4 /PRNewswire-FirstCall/ -- Dominion (NYSE: D) has decided to continue with the sale of Dominion Peoples to Peoples Hope Gas Companies (PH Gas). The company had planned to sell Dominion Hope to PH Gas as well, but the West Virginia Public Service Commission denied the application for sale in an order issued Dec. 22.
The sale of the western Pennsylvania natural gas utility to PH Gas, a subsidiary of SteelRiver Infrastructure Fund North America, was approved by the Pennsylvania Public Utility Commission on Nov. 19. The sales price is $780 million, adjusted for changes in working capital and levels of capital expenditures, and closing is expected in the first quarter of 2010.
The sale is neutral to Dominion's 2010 operating earnings per share outlook provided on its last earnings call.
Dominion Hope will rejoin Dominion East Ohio to make up Dominion's natural gas distribution business within Dominion Energy, the natural gas segment which also includes natural gas production, transmission and storage.
Dominion Peoples serves about 359,000 residences and businesses in Pennsylvania from its headquarters in Pittsburgh. Dominion Hope serves about 114,000 residences and businesses in West Virginia from its headquarters in Clarksburg, W.Va.
Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of more than 27,500 megawatts of generation, 1.1 trillion cubic feet equivalent of proved natural gas reserves, 14,000 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 975 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 http://www.dom.com/.