NiSource, Columbia Energy Group File at FERC
NiSource Inc. and Columbia Energy Group filed last week with the
Federal Energy Regulatory Commission (FERC) for merger approval
under the Federal Power Act (FPA).
The deal, announced Feb. 28, is expected to close by the end of
the year (see NGI March 6). The combined company will serve more
than 4.1 million customers, mainly in nine states. Operations will
span the energy corridor from the Gulf of Mexico to New England,
creating the largest gas distributor east of the Rockies, with
wholesale and retail electric operations.
"Today's filing is our next step toward creating a
super-regional enterprise with access to strategic and operational
opportunities that would not be available to us as separate
companies," said Gary L. Neale, NiSource CEO. "Together, we will
have three elements that are key to success in the increasingly
deregulated and competitive energy marketplace: increased size,
scope and scale; access to strategic geographic markets, and a
broad range of complementary assets."
The principal subsidiary of NiSource subject to FERC FPA
jurisdiction is Northern Indiana Public Service Co. (NIPSCO).
NIPSCO generates and distributes electricity to about 426,000
customers in 30 counties in northern Indiana, owns and operates
four coal-fired generating stations, two hydroelectric plants and
four gas-fired combustion turbine generating units, providing total
capability of 3,392 megawatts. The only Columbia subsidiary subject
to FPA jurisdiction is Columbia Energy Power Marketing (CEPM) Corp.
Current FERC and state regulatory jurisdiction over the companies'
subsidiaries will remain unchanged following the merger, according
to the filing. Joe Fisher, Houston
©Copyright 2000 Intelligence Press, Inc. All rights
reserved. The preceding news report may not be republished or
redistributed in whole or in part without prior written consent of
Intelligence Press, Inc.