Utilities PPL Corp. and National Grid are close to completing a kind of utility ownership trade deal.
Pennsylvania-based PPL announced Thursday it has received Federal Energy Regulatory Commission approval to acquire the Rhode Island-based Narragansett Electric Co. from National Grid USA. This transaction follows a March deal in which PPL sold UK distribution business Western Power Distribution to parent National Grid plc for 7.8 billion Euros.
The Narragansett Electric Co. acquisition, also announced back in March, is estimated at an equity value of about $3.8 billion.
To date, PPL and National Grid have partnered to achieve four of the five regulatory approvals required for the transaction to proceed. PPL remains focused on securing the final approval, which is required from the Rhode Island Division of Public Utilities and Carriers, and continues to expect that the transaction will be completed by March 2022.
“We’re pleased with FERC’s decision, which puts us one step closer to concluding an acquisition we believe will drive significant value for Rhode Island families and businesses and strengthen PPL,” said Vincent Sorgi, PPL president and chief executive officer.
Narragansett Electric is the largest electricity transmission and distribution service provider to Rhode Island with close to 780,000 electric and natural gas customers.
The majority of Narragansett Electric employees will stay with the company, according to the announced agreement.
“As we await final approval, we look forward to partnering with Narragansett Electric’s talented team to deliver energy safely, reliably and affordably to Rhode Island customers,” said Sorgi. “We’re excited about the opportunity this acquisition presents for PPL to build one of the nation’s most advanced grids, one that enables clean energy and supports the state’s ambitious decarbonization goals. And we look forward to partnering with local leaders to help strengthen Rhode Island communities.”
PPL currently is electric and natural gas provider to about 2.5 million customers in Pennsylvania, Virginia and Kentucky.