C&T Enterprises Acquires Assets of Valley Cities Gas

SAYRE, PA - C&T Enterprises, a subsidiary of Claverack and Tri-County Rural Electric Cooperatives, closed on the purchase of Valley Cities Gas Service of Sayre Tuesday, Nov. 7, 2002.

C&T was able to proceed with the acquisition of the common stock of Valley Cities from parent company, NUI Corp. of Bedminster, N.J., after receiving final approval from the Securities and Exchange Commission (SEC) on Oct. 31.

The natural gas distribution company, which serves approximately 6,600 customers in the Sayre, Athens, Towanda and Waverly, N.Y., areas, will operate as Valley Energy.

"The employees of Valley Energy are pleased to finally be a part of the C&T organization," said Robert Crocker of Sayre, president and chief executive officer of Valley Energy. "The acquisition will be beneficial to both our employees and our customers. We look forward to continuing to provide the high-quality, dependable service that our customers have come to expect."

Crocker praised Valley Energy's employees for their patience and professionalism throughout the acquisition process, which began more than two years ago.

The purchase was thoroughly reviewed and approved by the public utility commissions of Pennsylvania, New York and New Jersey, the Federal Energy Regulatory Commission, as well as the SEC.

Under terms of the sale, NUI Corp. will continue to provide certain support services to C&T, including gas supply management, gas control and engineering services, through separate three-year contracts.

"We are excited about finally being able to bring Valley Energy into the C&T organization," said Gerald Kite of Austin, Pa., who has been elected as chairman of the Valley Energy board of directors. "We are confident that the transition period will be a smooth one for Valley Energy's employees and its customers."

Kite said all 23 current Valley Cities employees are being retained by C&T Enterprises. The company will continue to operate from its location at 523 South Keystone Ave. in Sayre.

Robert O. Toombs, C&T Enterprises' president and chief executive officer, said the purchase of Valley Energy will allow C&T to broaden its customer base and achieve economies of scale that will benefit all of the C&T operating companies and their customers.

Valley Energy will be governed by a seven-member board of directors. In addition to Kite, other board members include vice chairman Steve Sliwinski of Troy, secretary Mark Elsbree of Sayre, Charles Carver Jr. of Sayre, John Logan of Sayre, Jay Haldeman of Germania and James Zick of Kingsley.

In addition to Crocker, other key management personnel include Sharon Stiveson, executive assistant; Marjorie Johnston, office manager; Steve Hurd, operations manager; Ed Rogers, service department manager; and Dale Bowers, construction department manager.

C&T Enterprises is a wholly owned subsidiary of Claverack Rural Electric Cooperative and Tri-County Rural Electric Cooperative. It was formed in 1998 to facilitate the cooperatives' acquisition activities.

The group of energy companies affiliated with C&T serves more than 53,000 consumers, primarily across Pennsylvania's Northern Tier. With the addition of Valley Energy employees to the C&T payroll, C&T's workforce will number about 200.

Claverack, based in Wysox, Pa., serves 17,000 members in Bradford, Susquehanna, Wyoming, Luzerne, Lackawanna, Lycoming and Sullivan counties. Tri-County, with headquarters in Mansfield, Pa., serves 17,500 members in Potter, Tioga, Cameron, Bradford, Lycoming, Clinton and McKean counties. Other C&T-affiliated companies are Wellsboro Electric Co., Citizens' Electric Co. of Lewisburg, Tioga Energy and Tioga Propane.