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DUKE/LOUIS DREYFUS AND EASTERN UTILITIES ASSOCIATES TO FORM ENERGY SERVICES COMPANY FOR NEW ENGLAND

WILTON, Conn., Dec. 6 /PRNewswire/ -- Duke/Louis Dreyfus LLC and Eastern Utilities Associates (NYSE: EUA) announced today that they have signed an agreement to form a company to market energy-related services in New England. The new entity, Duke/Louis Dreyfus Energy Services (New England) LLC, will engage in electric power and fuels marketing and associated market hedges; own or lease generating facilities; and participate in other energy-related activities, such as energy efficiency services and management of energy assets. The new entity will focus specifically on Maine, Vermont, New Hampshire, Rhode Island, Connecticut and Massachusetts.

Each partner will share in ownership, operating costs, revenues and profits of the new company. EUA's participation in the alliance is through a new wholly owned subsidiary, EUA Energy Services, Inc. Finalization of the agreement to form the new joint energy services company requires approval of the Securities and Exchange Commission for EUA Energy Services, Inc. Also, the new company requires Federal Energy Regulatory Commission approval to engage in power marketing.

Donald G. Pardus, EUA's chairman and chief executive officer, said EUA will benefit from the entrepreneurial management approach and strong track record of Duke/Louis Dreyfus. "This alliance will help strengthen the competitive position of EUA and Duke/Louis Dreyfus during a period when the electric utility industry is undergoing major changes," said Pardus. "As electricity becomes more of a commodity, teaming with an expert in the commodities market provides EUA with a real competitive advantage."

Noting that EUA customers currently comprise about 4 percent of New England's energy use, Pardus added: "This partnership with Duke/Louis Dreyfus will allow us to increase that market share."

Paul Addis, president of Duke/Louis Dreyfus, adds: "The alliance with EUA is another step in our strategy of joining with key regional utilities in an effort to build a national energy services business. EUA has an excellent reputation in New England and understands the needs of customers in this region.

"Combining the strengths of EUA and Duke/Louis Dreyfus will create value for the customers and shareholders of both companies," Addis said.

Duke/Louis Dreyfus LLC, headquartered in Wilton, Conn., is a joint venture of Duke Energy, a Duke Power (NYSE subsidiary, and Louis Dreyfus Electric Power, a subsidiary of Louis Dreyfus Group.

EUA is a Boston-based diversified energy services company whose shares are traded on the New York and Pacific stock exchanges. Its other subsidiaries are Blackstone Valley Electric Co., Eastern Edison Co., Newport Electric Corp., EUA Cogenex Corp., EUA Energy Investment Corp., EUA Ocean State Corp., EUA Service Corp., and Montaup Electric Co. Together, the companies are known as the EUA System.
 -0- 12/6/95


/CONTACT: Anne Sheffield, Duke/Louis Dreyfus LLC, 704-382-8063, or John R. Stevens, Eastern Utilities Associates, 617-357-9590/

(DUK EUA)

CO: Duke/Louis Dreyfus LLC; Eastern Utilities Associates ST: North Carolina, Connecticut IN: UTI SU:

JB -- CHW015 -- 5367 12/06/95 16:29 EST
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Publication:PR Newswire
Date:Dec 6, 1995
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