Less than one day after the Public Utilities Commission of Ohio(PUCO) threw its support behind the NiSource/Columbia Energy Groupmerger, three groups of Ohio schools urged the commission to make afull review of the proposal. On Tuesday, PUCO authorized a letterto the U.S. Securities and Exchange Commission (SEC) that statedthe proposed merger would have no impact on its ability to protectthe interests of Columbia Gas of Ohio ratepayers. However, theschools are not as confident.

The Ohio Schools Council, Bay Area Council and the Lake ErieCouncil, which comprise 115 school districts in northern Ohio,petitioned PUCO, requesting it investigate NiSource’s record ofservice complaints from customers, as well as its financialcondition. The three groups also want Columbia to open its mergerfiling to public review.

“This merger has the potential to negatively impact tax revenuesfor Ohio,” said Joe Lesak, executive secretary of the Ohio SchoolsCouncil. “Unless this proposed merger is carefully and fullyreviewed by the PUCO, we are concerned that the assumption byNiSource of over $8 billion of debt from Columbia will force thecompany to cut jobs and raise rates.” Lesak also said that withNiSource as the new out-of-state owner, the schools need acommitment that the company will work with them because they are”particularly large users of utility services.”

The schools groups also want PUCO to review why none of theestimated annual savings from the merger, estimated to be more than$100 million, was going to be returned to Ohio ratepayers, whichinclude the schools.

On Tuesday, PUCO said it would continue its jurisdiction overthe regulated activities of Columbia Gas of Ohio following themergerWith PUCO’s support, the merger moves one step closer to anexpected completion later this year. Shareholders and severalregulatory agencies still must pass on the combination.

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