Sale of NE utilities to fund CMP project
Iberdrola USA, the parent company of Central Maine Power Co., is selling three natural gas utilities in New England to generate funds for CMP's recently approved $1.4 billion transmission upgrade.
Iberdrola is selling Southern Connecticut Gas Co., Connecticut Natural Gas Corp. and the Berkshire Gas Co. of Massachusetts to utility company UIL Holdings for $885 million, according to the Associated Press. Iberdrola USA, a subsidiary of the Spanish energy company by the same name, says the deal will help pay for CMP's Maine Power Reliability Project, which includes a new 345-kilovolt transmission line from Orrington to Eliot. Iberdrola plans to fund the project with about half in cash and half through borrowing, with the money recouped from New England ratepayers. Maine ratepayers will fund 8% of the project.
The Maine Public Utilities Commission earlier this month approved the power grid upgrade project, which will build or rehabilitate 350 miles of transmission lines across the state.
The three utilities being sold have 369,000 customers in Connecticut and Massachusetts. The deal is expected to close by early next year, according to the AP.
Go to the article from the AP >>
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