Avista Energy announced today it has moved into the top ten inthe power marketing ranks with completion of its acquisition ofVitol Gas & Electric LLC, one of the top 20 energy marketingcompanies in the United States.

Terms of the acquisition were not disclosed. Vitol Gas &Electric’s operations and personnel will be blended into AvistaEnergy, with existing operations continuing pending development ofan integration plan.

Both Avista Energy and Vitol Gas & Electric have beenpositioned among the top power marketers in the nation. Togetherthe two firms would have achieved power sales exceeding 30 millionMWh in the third quarter of 1998 and would have been ranked ninethin sales among all U.S. power marketers, based on figures theNatural Gas Intelligence Power Marketer Rankings. (See GPI DailyNov. 9, 1998)

Combined gas volumes sold would amount to 2.8 Bcf/d after thedeal is finished, a spokesman said when the deal was firstannounced in December.

“This acquisition secures our position among the top 10 energymarketing and trading companies in the nation,” said T.M. Matthews,board chairman, president and CEO for parent Avista Corp. “Moreimportantly, we have purchased a company with exceptional talent,established markets and is well respected within those markets. Wenow have the presence needed to continue the growth of ourmarketing business and optimize generation assets anywhere in thecountry.”

Mathews had said earlier the acquisition made sense becauseAvista’s marketing operations are focused on the West and Vitol’sbusiness takes place east of the Rocky Mountains. “The fact thatthere was minimal overlap in the markets our two companies servewas critically important and made the deal a perfect fit,” Matthewssaid.

“A strong trading business helps further our understanding ofenergy markets and provides the platform on which we can build ourenergy marketing capabilities for end-use consumers,” Matthewssaid.

Executive Leadership Changes

As a result of the Vitol acquisition, there will be severalexecutive changes in Avista Corp. and its Avista Energy and AvistaPower operating companies, Matthews said. Gary G. Ely, currentlysenior vice president of Avista Corp. and chairman of AvistaEnergy, will become executive vice president of Avista Corp. NeilE. Kelley, chairman of Vitol Gas & Electric since 1993, nowbecomes chairman of Avista Energy.

Michael R. Kutsch, currently president of Vitol Gas &Electric, has been named president of Avista Energy. Kutschfounded Catamount Natural Gas, the forerunner to Vitol Gas &Electric, in 1987.

Lloyd H. Meyers, president of Avista Energy, becomes presidentof affiliate Avista Power, recently created to develop and owngeneration assets, primarily in support of Avista Energy. Inmid-December of last year, Avista Power announced its powergeneration partnership with Cogentrix Energy of Charlotte, N.C. andits first project in the Northwest in Idaho.

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