PPL says a Rhode Island court decision clears the way for the acquisition of Narragansett Electric Co. Regional News Leahy Valley
This was reported by PPL Corporation A Rhode Island court ruling on Monday clears the way for Narragansett Electric Co’s $ 5.3 billion acquisition by a utility company from Allentown.
The company and Attorney General Peter Neronha reached an agreement that allowed the Rhode Island Supreme Court to allow the deal to continue. PPL has agreed to assist some of Narragansett Electric’s low-income customers and pursue an environmental policy that meets its previously stated goals.
Neronha challenged the deal, citing concerns about rising rates and compliance with the Rhode Island Climate Act, which requires reductions in greenhouse gas emissions.
“We are delighted to have achieved this result, which further underscores PPL’s strong commitment to Rhode Island clients and advancing the state’s ambitious decarbonisation goals,” PPL CEO Vince Sorghi said in a statement. He said customers in Rhode Island would benefit directly and indirectly from the agreements announced Monday.
Earlier, PPL said it expects to buy Narragansett Electric in the British National Grid by the end of March. He now expects to close the deal this week. Narragansett Electric serves about 780,000 customers.
The agreement that led to the deal provides PPL to provide $ 50 million in loans to Narragansett Electric customers and forgive more than $ 43 million in payments. The utility will also not seek a base rate increase for at least three years after completing Narragansett Electric’s purchase of National Grid and until PPL will operate the assets for at least 12 months after the transitional service agreement with National Grid expires.
The company also agreed not to seek reimbursement for the costs associated with the acquisition, and not to try to recover more than $ 20 million in costs incurred by Narragansett Electric for certain costs of information technology and cyber.
PPL has also agreed to upgrade its supply chain and move away from fossil fuels, which is a goal stated by the company earlier. PPL will submit a climate report to Rhode Island within a year of acquisition.
Last year, Gov. Daniel McKee described the state’s climate law as a law that “requires bold action and commitment from the entire state government to put Rhode Island on a more sustainable path to a future of zero zero greenhouse gas emissions.”