Exhibit D-9.1
September 25, 2000
Xxxxx XxXxxxx, Secretary
Pennsylvania Public Utility Commission
P.O. Box 3265
Harrisburg, PA 17105-3265
Re: Affiliated Interest Agreement between The
Peoples Natural
Gas Company d/b/a Dominion Peoples and
Dominion Resource
Services, Inc.; G-________
Dear Secretary XxXxxxx:
The Peoples Natural Gas Company d/b/a Dominion Peoples
(hereinafter "Dominion Peoples") hereby makes this filing
pursuant to 66 Pa. C. S. Section 2101-2107 concerning relations
with affiliated interests. In particular, Dominion Peoples
is seeking approval of an agreement, a copy of which is
attached hereto as "Exhibit A", between Dominion Peoples
and Dominion Resources Services, Inc. (hereinafter DRS) in
anticipation of the merger of DRS and Consolidated Natural
Gas Services Company, Inc. (hereinafter CNG Services) into
one company.
The agreement for which Dominion Peoples seeks
approval in this instance is a service agreement for a
variety of administrative, management, and other services
by DRS, which will supplant an agreement between The
Peoples Natural Gas Company and Dominion Resources
Services, Inc. and CNG Services. The existing service
agreement was approved by this Commission by order dated
January 12, 2000 at Docket No. G-00990713.
CNG Services was formed in 1966, and DRS was formed by
Dominion Resources, Inc. (hereinafter DRI) in anticipation
of the merger of DRI and CNG. After closing of the merger
on January 28, 2000, which was approved by this Commission
by order dated June 25, 1999 at Docket No. A-122250F0010,
DRS and CNG Services entered into the aforementioned
existing service agreement. To date, the DRI/CNG combined
system has been operating with two service companies, DRS
and CNG Services, both subsidiaries of DRI. By order of
the Securities and Exchange Commission, all service
functions for the DRI/CNG combined system are to
centralized and provided by a single company no later than
March 31, 2001.
DRI has completed an analysis and review of
efficiencies to be gained by the combination of the two
service companies and proposes revisions to the
aforementioned existing agreement. Changes will be made to
the basis of allocation to reflect what services and groups
will be in the combined services company. Certain wording
changes will also be made to the existing services
agreement in order to update references, eliminate
unnecessary detail, and clarify the mechanics of the
methods of cost allocation. A comparison of the existing
agreement and the proposed agreement is attached hereto as
"Exhibit B".
Dominion Peoples seeks approval of the new services
agreement in anticipation of the merger of DRS and CNG
Services in the first quarter of 2001 after all other
necessary regulatory approvals have been obtained. The new
service agreement will become effective as of the effective
date of the DRS/CNG Services Merger.
Please date stamp and return to me the enclosed copy
of this transmittal letter in the envelope provided. Thank
you.
Very truly yours,
Xxxxx Xxxxxxx Xxxxxx
Enclosure
SGG arw
