RICHMOND, Va., Feb. 17 /PRNewswire-FirstCall/ -- Dominion (NYSE: D)
announced today that it will offer Dominion Cleveland Thermal for sale to a
qualified buyer. Dominion Cleveland Thermal operates a district heating and
cooling system in Cleveland, Ohio, which provides steam and chilled water to
more than 200 buildings.
"Dominion Cleveland Thermal is an excellent business with stand-alone
operating capability that has benefited from substantial improvements by
Dominion," said Mark F. McGettrick, president and chief executive officer of
Dominion Generation. "It has a good management team and skilled workforce, and
a list of potential new customers. We are committed to finding a buyer who
can provide reliable heating and cooling to these important Cleveland
buildings."
The largest customers are Cleveland State University, the County of
Cuyahoga, the Celebreeze Federal Office Building and Courthouse, and the City
of Cleveland. Dominion purchased the facilities in 2001, expanded the cooling
plant capacity by 20 percent and completed a distribution system expansion to
serve new customers. Dominion Cleveland Thermal has reduced distribution
losses by 30 percent over the last seven years, lowered fuel costs by
20 percent the last two years and increased revenues 14 percent over the last
three years.
"We are pleased with Dominion Cleveland Thermal's performance and proud to
have played a role in its growth," McGettrick said. "But current market
conditions makes this a good time to seek bids for a top-notch company that
can stand alone."
Dominion is one of the nation's largest producers of energy, with a
diversified and integrated energy portfolio that includes 24,000 megawatts of
generation and 6.2 trillion cubic feet equivalent of proved natural gas
reserves. Dominion also serves 5.3 million retail energy customers in nine
states. For more information about Dominion, visit the company's Web site
at http://www.dom.com .
Dominion has retained Concentric Energy Advisors, Inc (CEA) as its adviser
for the transaction. Dominion has sent early interest letters soliciting
formal expressions of interest from potential bidders. Confidentiality
agreements will be executed with qualified bidders invited to participate in
the process. Formal Offering Memoranda to qualified bidders are expected to be
issued this month.
To inquire about the sales process or to receive further information about
Dominion Cleveland Thermal, interested bidders should contact the company's
adviser: Lisa Quilici, vice president, CEA, (508) 263-6210, or Robert B.
Hevert, president, CEA, (508) 263-6204.
SOURCE Dominion
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Company News On-Call:
http://www.prnewswire.com/comp/203456.html
Related links:
http://www.dom.com
CONTACT:
Dan Donovan, +1-412-690-1370 or cell,
+1-412-951-1080, or Joseph O'Hare, +1-804-819-2156, both of
Dominion
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