Dominion closes sale of Dominion Peoples to PNG for $780MM

Dominion (D) 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.

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