  We study the competition between intersite and local correlations in a
spinless two-band extended Hubbard model by taking an alternative limit of
infinite dimensions. We find that the intersite density fluctuations suppress
the charge Kondo energy scale and lead to a Fermi liquid to non-Fermi liquid
transition for repulsive on-site density-density interactions. In the absence
of intersite interactions, this transition reduces to the known
Kosterlitz-Thouless transition. We show that a new line of non-Fermi liquid
fixed points replace those of the zero intersite interaction problem.
