THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, April 13, 1995 TAG: 9504130383
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY TOM SHEAN, STAFF WRITER
LENGTH: Short : 40 lines
In their final report to state utility regulators, consultants have recommended reducing Dominion Resources Inc.'s management and financial control over Virginia Power, the state's largest electric utility.
The consultants, hired by the State Corporation Commission last year to examine ties between Dominion Resources and and its subsidiary, also recommended Wednesday that responsibility for nominating Virginia Power's directors and choosing its chairman rest solely with the Virginia Power board.
The SCC ordered the report last August after the boards of Richmond-based Dominion Resources and Virginia Power battled for four months over control of the utility.
The SCC, which intervened in the dispute last June, expressed concern at the time that antagonism between the companies' boards and executives could threaten the reliability of electricity service to Virginia Power's 1.9 million customers.
The report's authors - the Liberty Consulting Group in Baltimore and financial consultant J. Robert Malko - acknowledged that relationships between Virginia Power and its parent have improved since last fall. However, they recommended an array of changes, including ones that would restrict Dominion's diversification into nonutility areas.
In a joint statement Wednesday, Dominion and Virginia Power said they had resolved many of their differences and insisted that their ``current structure is serving the interests of our customers and shareholders well.''
``The problems of last year are behind us,'' the companies said. ``We will study the report carefully and continue to work with the SCC to resolve any remaining issues.'' by CNB