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For Immediate Release CONTACTS:
October 11, 2000 News Media
Michael J. McGarry (703) 561-6063
Financial Community
Thomas L. Hughes (703) 561-6001
COLUMBIA ENERGY GROUP TO SELL INTERESTS IN COLUMBIA ELECTRIC CORP. OPERATING
FACILITIES TO DELTA POWER COMPANY
HERNDON, Va., October 11, 2000 - Columbia Energy Group announced today that
its Columbia Electric subsidiary has agreed to sell its interests in four power
generation plants to a partnership between Delta Power Company and John Hancock
Life Insurance Company for an undisclosed sum. The sale includes Columbia
Electric's interests in the following operating facilities:
- The Gregory Power Project near Corpus Christi, Texas, a 550 megawatt (MW)
equivalent combined cycle facility that provides both steam and electricity
to Alcoa's Sherwin alumina facility and sells excess electricity into the
ERCOT region, primarily through a marketing agreement with Dynegy. Columbia
Electric has a 50% ownership interest in this facility.
- An approximately 117 MW combined cycle facility near Pedricktown, New
Jersey that provides steam and electricity for industrial use to Geon and
sells excess electricity into the PJM merchant marketplace. Columbia
Electric has a 50% ownership interest in this facility.
- An approximately 47 MW combined cycle facility near Vineland, New Jersey
that provides electricity to the City of Vineland Electric Utility and
steam to Diageo's Progresso unit. Columbia Electric has a 50% ownership
interest in this facility.
- An approximately 85 MW cogeneration facility in Rumford, Maine. Columbia
Electric has approximately a 10% ownership interest in this facility.
These projects are Qualifying Facilities under the Public Utilities
Regulatory Policy Act (PURPA), and were not included in the previously announced
sale of Columbia Electric to Orion Power Holdings.
Columbia Energy Group, based in Herndon, Va., is one of the nation's leading
energy services companies, with assets of approximately $7 billion. Its
operating companies engage in nearly all phases of the natural gas business,
including exploration and production, transmission, storage and distribution,
propane and petroleum product sales, and electric power generation. Information
about Columbia Energy Group (NYSE:CG) is available on the Internet at
www.columbiaenergygroup.com.
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Delta Power Company, LLC, based in Morristown. N.J., is a privately held
independent power company that develops, owns and manages power projects. In
addition to this transaction, Delta owns interests in six other natural gas
fired power plants in the U.S. Information about Delta Power Company is
available on the Internet at www.deltapower.com.
John Hancock Life Insurance Company is a wholly owned subsidiary of John Hancock
Financial Services Inc. John Hancock Financial Services, Inc. (NYSE: JHF) and
its affiliated companies provide a broad array of insurance and investment
products and services to retail and institutional customers. As of June 30,
2000, John Hancock and its subsidiaries had total assets under management of
$126.9 billion. Information about John Hancock is available at www.jhancock.com.
This press release contains "forward-looking statements" within the meaning of
the Federal securities laws, including statements concerning Columbia's,
Columbia Electric's, and Delta Power's plans, objectives and expected
performance. There can be no assurance that actual results will not differ
materially due to various factors, many of which are beyond the control of the
companies, including, but not limited to, market conditions and competition.
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