Conectiv, a Mid-Atlantic electric and gas utility, announcedsweeping changes in its strategic focus earlier this week, but didnot alter its plan for gas operations. Conectiv said the changeswere made due to a clearing regulatory picture in the areas itserves.

“The regulated electric and gas delivery business will providecontinued strong cash flows and will be the basis for expandedvital services growth beyond regulated delivery. In conjunctionwith our delivery business, Conectiv will continue to be a majorprovider of energy throughout the Mid-Atlantic region,” HowardCosgrove, Conectiv’s CEO, said.

While its regulated energy delivery businesses will continue tooperate as planned, other parts of Conectiv’s overall strategy havedrastically changed. It announced intentions to sell 2,200 MW ofnuclear and baseload fossil generation assets. The company’s goalis to sell the assets by midyear 2000. Conectiv said it does notconsider this generation to be among its core assets, but thedivestiture does signal a change of strategy.

“This approach reflects our belief that we must concentrate onbecoming a provider of multiple vital services under a commonbrand, rather than use our generation resources to compete in thecommodity wholesale business,” Cosgrove said. Conectiv willconcentrate its energy business around 2,000 MW of flexible,low-cost generation that backs the company’s merchant capabilities.

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