Dominion to acquire Questar Gas Company
The Wyoming Public Service Commission (WPSC) announced on Friday that it has approved a merger and reorganization of the Questar Gas Company to become a subsidiary of Dominion Resources, Inc.
Questar Gas is a public utility as defined in W.S. § 37-1-101(a)(vi)(D), and, as such,
is subject to the Commission’s jurisdiction pursuant to W.S. § 37-2-112.
The parties involved filed a joint application with the commission on March 3. If the merger is fully completed, Dominion will continue to operate Questar Gas as a jurisdictional utility in Wyoming, renaming the company as Dominion Questar Gas.
Questar will exchange shares of approximately $4.4 billion. Dominion has executed bridge and term loan acquisition financing agreements that will cumulatively satisfy 100 percent of the amount required to fund the exchange of shares for cash. Additionally, Dominion Questar will assume the Questar Corporation and its subsidiaries existing indebtedness, totaling approximately $1.7 billion.
The WPSC has ruled that the joint application is financially sound and does not expect that the merger will affect existing customers. The joint application also states that after the acquisition, rates charges for the services to Questar Gas customers will be the same as those currently charged those customers.
Public comments must be submitted to the commission by April 8.
