Citizens Utilities Separation Plan Clears Federal Energy Regulatory Commission Review.STAMFORD, Conn.--(BUSINESS WIRE)--Sept. 17, 1998--Citizens Utilities (NYSE NYSE See: New York Stock Exchange : CZN, CZNPr) announced today that the Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. (FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability ) Order which granted an approval for the Company's plan to separate its telecommunications businesses and public services Public services is a term usually used to mean services provided by government to its citizens, either directly (through the public sector) or by financing private provision of services. businesses into two separate publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. has now cleared the time period for rehearing rehearing n. conducting a hearing again based on the motion of one of the parties to a lawsuit, petition or criminal prosecution, usually by the court or agency which originally heard the matter. . "The finalization of the FERC Order is an important milestone in our separation plan," said Robert J. DeSantis, Citizens' chief financial officer. "We can now proceed with requests for the remaining regulatory approvals." Citizens will now request and expects to obtain authorization from a number of state regulatory agencies state regulatory agency A state body responsible for establishing professional standards, and for certifying professionals or organizations through appropriate documentation , the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. and the Securities and Exchange Commission to transfer its telecommunications businesses to a new company which will then be spun off to Citizens' shareholders. Citizens will also request a ruling from the Internal Revenue Service that the separation will be tax-free to the Company and its shareholders. The transaction is expected to be completed in the second half of 1999. The goal of the separation is to increase shareholder value by enabling the Company's telecommunications businesses and public services businesses to independently pursue their own strategies and compete more effectively. Citizens Utilities provides telecommunications services and public services, including natural gas distribution, electric distribution, water distribution and wastewater treatment services to approximately 1.8 million customers in 21 states. Citizens owns 83% of Electric Lightwave, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ELIX), a leading full-service, facilities-based competitive local exchange carrier and has a significant investment in Centennial Cellular Corp. (NASDAQ: CYCL), a cellular telephone company. Visit Citizens website at www.czn.net This news release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. These and all forward-looking statements are only predictions or statements of current plans that are constantly under review by the Company. All forward-looking statements may differ from actual results because of, but not limited to, changes in the local and overall economy, the nature and pace of technological changes, the number and effectiveness of competitors in the Company's markets, success in overall strategy, weather conditions, changes in legal or regulatory policy, the Company's ability to identify future markets and successfully expand existing ones and the mix of products and services offered in the company's target markets. These important factors should be considered in evaluating any statement contained herein and/or made by the Company or on its behalf. The foregoing information should be read in conjunction with the Company's filings with the U.S. Securities and Exchange Commission including, but not limited to, reports on Forms 10K and 10Q. The Company has no obligation to update or revise these forward-looking statements to reflect the occurrence of future events or circumstances. |
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