To gain flexibility for its growing non-regulated business, NewJersey-based NUI Corp. has announced the formation of an exemptholding company structure.

“In fiscal 2000, nearly 60% of our revenue and 14% of ourpre-tax operating income came from our non-regulated businesses,”said John Kean, Jr., NUI president and CEO. Five years ago all thecompany’s revenue and income came from natural gas distributionoperations.

“In 1995 we looked at a number of things we do very well and sawan opportunity to create new businesses around those skills andcompetencies outside the traditional utility environment,” Keancontinued. “Since then we have been very successful in growingthose non-regulated businesses.”

The move to a holding company structure exempt from registrationunder the Public Utility Holding Company Act of 1935 will provide”operational and financing flexibility and enable the company toaccelerate its growth strategy,” Kean said.

Under the reorganized structure, NUI Corporation initially willhave two direct subsidiaries: NUI Utilities, Inc. and NUI CapitalCorp. NUI Utilities, Inc., operates as a regulated natural gasutility in the states of New Jersey, New York, Pennsylvania,Maryland, North Carolina and Florida. NUI Capital Corp. is theholding company for the company’s non-regulated businesses involvedin wholesale energy trading and portfolio management; retail energysales; energy environmental project development; energy consulting;sales outsourcing; telecommunications; and geospatial and customerinformation systems and services.

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