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Conectiv's Restructuring Will Not Affect Gas Operations

Conectiv's Restructuring Will Not Affect Gas Operations

Conectiv, a Mid-Atlantic electric and gas utility, announced sweeping changes in its strategic focus earlier this week, but did not alter its plan for gas operations. Conectiv said the changes were made due to a clearing regulatory picture in the areas it serves.

"The regulated electric and gas delivery business will provide continued strong cash flows and will be the basis for expanded vital services growth beyond regulated delivery. In conjunction with our delivery business, Conectiv will continue to be a major provider of energy throughout the Mid-Atlantic region," Howard Cosgrove, Conectiv's CEO, said.

While its regulated energy delivery businesses will continue to operate as planned, other parts of Conectiv's overall strategy have drastically changed. It announced intentions to sell 2,200 MW of nuclear and baseload fossil generation assets. The company's goal is to sell the assets by midyear 2000. Conectiv said it does not consider this generation to be among its core assets, but the divestiture does signal a change of strategy.

"This approach reflects our belief that we must concentrate on becoming a provider of multiple vital services under a common brand, rather than use our generation resources to compete in the commodity wholesale business," Cosgrove said. Conectiv will concentrate its energy business around 2,000 MW of flexible, low-cost generation that backs the company's merchant capabilities.

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