Dominion Resources Inc. last week announced a new corporatestructure that will integrate the assets of Consolidated NaturalGas Co., which it merged with in January, and will streamlineoperations.

The new company will be structured into three business units:electricity generation; gas and electric delivery; and oil and gasexploration and production (E&P). “This organization will helpus boost our stature as a major competitor at each point in theenergy delivery chain, from wellhead production to lighting andheating homes,” said Thomas E. Capps, president and CEO of thenewly merged company.

“…[O]ur strategy to cross sell electricity and natural gas andprovide energy products to all customers classes will be carriedout in a coordinated, efficient and cost-effective manner,” he saidin a press statement.

Capps said the company already has begun a major initiative toconsolidate its systems, eliminate overlap, adopt best-businesspractices and to reduce the size of its 1,700-member workforce.Dominion wasn’t able to estimate when or how many staff reductionswould occur, or which divisions, units and departments would bemost affected. It said reductions will be accomplished throughattrition, voluntary early retirement, and voluntary andinvoluntary severance programs.

The generation unit, which will operate as Dominion Energy, willmanage an existing portfolio of 85 regulated and unregulatedgenerating units and supervise the acquisition and construction ofnew generation facilities. The unit, which will be located inRichmond, VA, also will oversee wholesale sales of electricity andgas, as well as the company’s gas pipeline and storage operations.The latter will be headquartered in Clarksburg, WV.

Thomas F. Farrell II will be CEO of Dominion Energy, and JamesP. O’Hanlon will be president and chief operating officer.

The delivery business unit will manage all local electric andgas distribution systems, and customer service and electrictransmission. Specifically, it will oversee Virginia Power, NorthCarolina Power, Peoples Natural Gas, Hope Gas, East Ohio Gas andVirginia Natural Gas (VNG). VNG will remain part of the businessunit until it is either sold or spun off according to the terms ofthe merger agreement with Virginia regulators. Edgar M. Roach Jr.will be CEO of the unit, which will be called Dominion Delivery. Hewill be based in Pittsburgh, PA.

The E&P business unit will operate as Dominion Exploration& Production, and will be located in Houston and New Orleans,LA. This unit will manage Dominion’s onshore and offshore oil andgas E&P activities. H. Patrick Riley, who previously waspresident of Consolidated’s CNG Producing Co., will be CEO.

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