Vectren Corporation Announces Disposition by ProLiance Holdings, LLC of Wholesale Gas Marketing Assets
EVANSVILLE, IN--(Marketwired - Jun 18, 2013) - Vectren Corporation (NYSE: VVC) announced effective June June 18, 2013, ProLiance Holdings, LLC (ProLiance) has disposed of certain of the net assets, along with the long term pipeline and storage commitments, of its wholesale natural gas marketing subsidiary, ProLiance Energy, LLC, to a subsidiary of Energy Transfer Partners (NYSE: ETP). In addition to meeting the gas supply needs of its 2,000 commercial and industrial customers, since 1996 ProLiance Energy has provided the gas supply portfolio administration services for Vectren's and Citizens Energy Group's Indiana gas utilities. ProLiance is jointly owned by affiliates of Vectren (61% ownership) and Citizens Energy Group (39% ownership).
"We are very pleased ProLiance found a logical buyer for the net assets of ProLiance Energy in Energy Transfer Partners, which is well positioned to continue to serve ProLiance Energy's customers," said Carl Chapman, Vectren's chairman, president and CEO. "We're confident the transition will go smoothly for ProLiance's customers."
ProLiance's decision to sell these assets is consistent with Vectren's previously stated strategy, including in its most recent filing on Form 10-Q. Vectren disclosed that it continues its emphasis on growing its infrastructure and energy services businesses, and that the analysis and evaluation of strategic alternatives related to the investment in its energy marketing affiliate was ongoing.
Under the new ownership by Energy Transfer Partners, continued net benefits to Vectren's and Citizens' gas utility customers are expected. Indiana gas customers of Vectren and Citizens have realized aggregate gas cost savings well in excess of $200 million as a result of the portfolio administration service provided by ProLiance Energy since its inception in 1996.
Upon final adjustments for working capital, costs and fees associated with the disposition of these net assets, ProLiance expects to record a loss of betwee