Narragansett Electric is being sold to a Pennsylvania company, National Grid announced Thursday morning.
National Grid has agreed to PPL acquiring The Narragansett Electric Company, National Grid’s electric and gas business serving customers in Rhode Island, for an equity value of US$3.8 billion.
As part of today’s announcement, National Grid has also announced that it will look to sell a majority stake in its National Grid Gas Transmission business in the U.K.
Narragansett Electric is the largest electricity transmission and distribution service provider to Rhode Island, as well as a natural gas distributor in the state, serving approximately 780,000 customers. PPL, headquartered in Allentown, Pennsylvania, provides essential energy services to approximately 2.7 million customers.
Badar Khan, President of National Grid U.S., said: “We are proud of our Narragansett Electric colleagues and their success in building a strong, responsible business. Narragansett Electric will be joining a team at PPL that remains safety-driven, locally focused, and committed to the communities we serve. We are confident of a seamless transition, uninterrupted service, and ongoing support of our customers and teams. The U.S. remains the strongest geographic contributor to National Grid’s growth and is a critical driver of our strategy.”
John Pettigrew, Chief Executive of National Grid, said: “Narragansett Electric has always had a reputation for high performance, and PPL is gaining a world-class operation. Western Power Distribution presented a unique opportunity for National Grid to achieve scale in U.K. electricity distribution, a key component of our strategy to be at the heart of a clean, fair, and affordable energy future. Similarly, Narragansett Electric was a coveted business by PPL. We are pleased that this announcement is enabling two highly motivated operators to connect with two high-quality businesses in furtherance of our respective visions. National Grid will continue to have a diversified portfolio of assets across the U.K. and U.S. markets. I want to personally thank our colleagues at Narragansett Electric for their hard work, stellar service to customers, and dedication to providing safe and reliable energy to the communities they serve. We are confident in PPL’s ability to continue operating this business in a manner that serves Narragansett Electric’s communities, customers, and stakeholders well.”
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