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FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
CURRENT REPORT
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Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event Reported) August 30, 1999
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COLUMBIA ENERGY GROUP
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(Exact name of registrant as specified in its charter)
Delaware 1-1098 13-1594808
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
13880 Dulles Corner Lane, Herndon, VA 20171-4600
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(Address of principal executive offices)
Registrant's telephone number, including area code (703) 561-6000
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Item 5. Other Events
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Information contained in News Releases dated August 30, 1999 is
incorporated herein by reference.
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SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Columbia Energy Group
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(Registrant)
By /s/ Jeffrey W. Grossman
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Vice President & Controller
Date: August 31, 1999
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FOR IMMEDIATE RELEASE CONTACTS:
August 30, 1999 R.A. Rankin, Jr. (News Media)
703/561-6044
Melissa E. Bockelmann (Financial Community)
703/561-6011
COLUMBIA ENERGY GROUP UNIT TO SELL
WHOLESALE AND TRADING OPERATIONS
HERNDON, Va., Aug. 30, 1999 -- Columbia Energy Services (CES) today
announced that it has decided to sell its wholesale and trading operations,
based in Houston, Tex. The move came following a strategic review of CES's
overall energy marketing businesses begun in February 1999. Columbia Energy
Services is a wholly owned subsidiary of Columbia Energy Group.
"We have concluded that CES would do better to concentrate on becoming
a significant player in the retail end of the business, where Columbia's
existing geographic footprint gives us an advantage," said Brian Watt, president
and CEO of CES. "Columbia's principal operations are in the East, amidst a dozen
key states expected to provide the best retail opportunities as deregulation of
gas and electrical power markets proceeds. Therefore, we intend to concentrate
our resources on developing these opportunities. The recently announced
consolidation of our retail businesses in Herndon, Va. and refocusing of our
retail operations both are aimed at this objective.
"We have built and grown a wholesale gas and electric trading operation
in Houston," Watt said, "but with our strategic shift, CES will no longer pursue
a strategy aimed at being a top tier wholesale marketer."
During the first six months of 1999, the Houston operation sold a daily
average of five billion cubic feet of gas and a total of over 17 million
megawatt hours of electricity. The CES trading team has managed volumes for 65
pipelines and 77 local distribution companies, also trading power in six North
American Electric Reliability Council regions in the Eastern Interconnect. The
unit ranks among the top 15 for gas sales and has made the top 20 in electric
power sales, in terms of volume.
This action by CES will not require staff reductions in the Houston
unit, pending the sale of the business. The Houston operation has approximately
150 employees.
"We intend to sell the wholesale and trading operation as a going
concern and are not interested in 'selling the book' and liquidating the
business," said Watt. "The new owner may see value with continuing to provide
certain resources to Columbia Energy Group businesses, and therefore Columbia
will entertain the possibility of contracting with the purchaser to provide
Columbia with these services," he added.
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A briefing package for potential buyers of the business will be
prepared. Companies with an interest in acquiring the business should contact
Dennis Pick, Columbia Energy Group Service Corporation, at 703/561-6797.
In accordance with generally accepted accounting principles, the CES
wholesale and trading operations will be reported as "discontinued operations"
on Columbia Energy Group's consolidated financial statements.
Columbia Energy Group, based in Herndon, Va., is one of the nation's
leading energy services companies, with assets of $7.2 billion. Its operating
companies engage in all phases of the natural gas business, including
exploration and production, transmission, storage and distribution, as well as
retail energy marketing, 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.
This press release contains "forward looking statements" within the
meaning of the Federal securities laws, including statements concerning, on a
consolidated, segment or subsidiary basis, Columbia'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 Columbia, including, but not limited to, competition, the regulatory approval
process, weather, supply and demand for natural gas, electricity and propane,
and changes in general economic conditions.