In a $1.3 billion deal, United Illuminating Co.”™s corporate parent is acquiring a trio of natural gas suppliers in Connecticut and Massachusetts.
Iberdrola USA Inc. is selling to New Haven-based UIL the Southern Connecticut Gas Co., Connecticut Natural Gas Corp. and the Berkshire Gas Co., which hold net debt of $411 million. The companies expect to complete the deal early next year, provided they secure approval from the Connecticut Department of Public Utility Control and the Massachusetts Department of Public Utilities, as well as from federal regulators.
Together, the three natural gas distributors serve more than 333,000 natural gas customers in Connecticut and 36,000 in Massachusetts. Spain-based Iberdrola acquired the companies in its 2008 purchase of Energy East.
The deal will increase UIL”™s market presence in Fairfield County, where United Illuminating is the dominant electricity provider in the Bridgeport area. United Illuminating is one of two major utilities in Connecticut, alongside the Connecticut Light & Power division of Northeast Utilities, which also owns Yankee Gas.
Approximately 130,000 Southern Connecticut Gas customers are located in the service territory already served by United Illuminating.
