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
"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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