PITTSBURGH, March 15 /PRNewswire-FirstCall/ -- Citing its belief that
the Federal Trade Commission (FTC) is overstepping its bounds, Equitable
Resources Inc. (NYSE: EQT) announced Thursday it will contest the FTC's
challenge of the proposed sale of Dominion Peoples to Equitable Resources.
On March 15, the FTC informed Dominion Resources (NYSE: D) and
Equitable that it will challenge Dominion's planned sale of Dominion
Peoples to Equitable. The FTC action comes in spite of an initial decision
in February by a Pennsylvania Public Utility Commission (PUC)
administrative law judge that the transaction will promote the public
interest.
"The FTC's action undermines the authority of the PUC, which expressly
is authorized to regulate Pennsylvania utilities," said Murry S. Gerber,
chairman and chief executive officer of Equitable Resources. "If the FTC's
challenge is successful, 750,000 customers will be deprived the benefits of
this proposed acquisition."
Citing the numerous benefits to customers of both companies and after
an exhaustive review process, including testimony and public hearings on
the very issues raised in the FTC complaint, PUC Administrative Law Judge
John H. Corbett Jr. issued an opinion recommending approval of the
acquisition. In his recommendation, he stated that a "properly functioning
and effectively competitive retail natural gas market must be one that
assures an opportunity for all customers to benefit -- not just a select
few."
Judge Corbett also found that the acquisition would "not result in any
anti-competitive or discriminatory conduct, including unlawful exercise of
market power in the retail natural gas market." Additionally, he noted that
the proposed acquisition " ... will affirmatively promote the public
interest ... "
"The review and approval of our proposed sale in Pennsylvania is
properly within the jurisdiction of the Pennsylvania Public Utility
Commission," said Thomas F. Farrell, president and chief executive officer
of Dominion. "It is inappropriate for the FTC to substitute its judgment
for that of the Pennsylvania agency that specializes in regulating these
utilities."
The PUC is expected to issue its final order in the near future.
Equitable Resources is the parent corporation of Equitable Gas Company
and Equitable Production. It produces, stores, transports, and distributes
natural gas through its primary operating areas of Pennsylvania, West
Virginia, Kentucky, and Virginia. It is the largest natural gas producer in
the Appalachian region.
Forward-Looking Statements
Statements that relate to the plans of the Company to challenge the FTC
action are forward-looking. A variety of factors could cause the Company's
actual results to differ materially from the anticipated results. The risks
and uncertainties that may affect the results of the Company's
forward-looking statements include, but are not limited to, those set forth
under Item 1A, "Risk Factors", of the Company's Form 10-K for the year
ended December 31, 2006.
SOURCE Equitable Resources, Inc.
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Related links:
http://www.eqt.com/
CONTACT:
Media: Patricia Kornick, +1-412-553-5738, or
Analysts: Patrick Kane, +1-412-553-7833, both of Equitable
Resources
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