PITTSBURGH, April 13 /PRNewswire-FirstCall/ -- While welcoming the
Pennsylvania Public Utility Commission's (PUC) order approving its
acquisition of Dominion Peoples, Equitable Resources Inc. (NYSE: EQT)
announced it will challenge the Federal Trade Commission's (FTC) intrusion
into a state utility issue -- an intrusion that is robbing western
Pennsylvanians of jobs and more than $160 million in customer cost savings.
On April 13, the PUC approved Equitable Resources' purchase of Dominion
Peoples, a local natural gas distribution company, finding the acquisition
will affirmatively promote the public interest in a substantial way. On the
same day, the FTC filed a request for a preliminary injunction in federal
district court in western Pennsylvania to stop the sale, claiming it would
result in a monopoly of the natural gas utility industry in western
Pennsylvania and thwart competition.
"The FTC claims are without merit," said Randall L. Crawford, senior
vice president of Equitable Resources. "Public utilities are natural
monopolies whose daily operations and rates are regulated by state public
utility commissions. The FTC's action exhibits a clear lack of
understanding about Pennsylvania's strict regulation of the natural gas
distribution industry and reinforces why this is a state, not federal,
matter.
"This acquisition will add jobs, result in customer cost savings and
improve competition in natural gas supply," Crawford continued. "There
never has been an acquisition that makes more sense for western
Pennsylvania natural gas customers or our communities."
As for the acquisition allegedly stopping competition, the PUC also
decided in its April 13 ruling that the settlement will promote development
of a competitive natural gas supply market. "Equitable's commitment to
collaborate with natural gas marketers will provide a competitive market
that will benefit all customers," Crawford said. "Customer gas supply
options will increase after the acquisition." PUC Commissioner Fitzpatrick,
in his statement accompanying the order, also recognized that increased gas
supply competition has "the potential to benefit all customers."
Additionally, the FTC's action in a state review process is depriving
almost 750,000 customers the job opportunities and gas cost savings that
will result from the acquisition. In fact, the FTC's action has forced
Equitable to postpone recently the hiring of 150 people, including 100 at
the Johnstown call center. The FTC action to stop the acquisition also is
jeopardizing $10 million in annual customer gas cost savings, and
approximately $150 million in capital cost savings that would be realized
over time by reducing the costs of operating and maintaining duplicative
utility lines.
Equitable Resources is an integrated energy company that produces,
transports, supplies and distributes natural gas throughout primary
operations in Pennsylvania, West Virginia, Kentucky, and Virginia. It is
the largest natural gas supplier in the Appalachian basin. For additional
information on Equitable, visit http://www.eqt.com.
Forward-Looking Statements
Statements in this news release that do not relate strictly to
historical or current facts, such as the efficiencies projected from the
Company's acquisition of Dominion Peoples, 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:
Patricia Kornick of Equitable Resources,
Inc., +1-412-553-5738
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