DPUC Approves UIL Purchase of CNG And Southern

The state Department of Public Utility Control (DPUC) has approved UIL’s purchase of Connecticut Natural Gas (CNG) and the Southern Connecticut Gas Company (Southern) for $1.156 billion. UIL is the holding company for the United Illuminating electric distribution utility. CNG serves approximately 157,000 customers in the Hartford-New Britain area and Greenwich. Southern serves approximately 176,000 customers from Westport to Old Saybrook, including Bridgeport and New Haven.

 

Among its many findings in approving the transaction, DPUC determined that:

1. the transaction would help level UIL’s cash flow throughout the year, as gas usage peaks in the winter and electric usage peaks in the summer;
2. although UIL has never owned a regulated gas distribution company, many of its directors, managers, and employees have significant experience in the regulated natural gas industry;
3. UIL expects to rely on CNG’s and Southern’s existing employees, plants and facilities and does not intend to implement workforce reductions; and
4. the decision would have no immediate effect on rates and no rates would change without further DPUC review.