PPL is inching closer to the finalization of the sale of its U.K. utility while moving ahead in the administrative process with the acquisition of its first New England-based utility.

During Thursday’s first-quarter earnings call, CEO Vincent Sorgi said the company is making “good progress” on the regulatory approval processes related to the sale of Western Power Distribution (WPD), the distribution utility for parts of England and Wales, to London-based National Grid, while acquiring National Grid’s Narragansett Electric. The multibillion-dollar deal was first announced in March. (See PPL to Sell UK Business, Acquire Narragansett Electric.)

National Grid shareholders in April voted to approve the nearly $11 billion WPD transaction, Sorgi said, and PPL is awaiting one final regulatory approval in the U.K. before the deal officially goes through. Sorgi said the company could close on the sale of WPD as early as this month.

Sorgi said PPL officials “remain confident” the company can complete the $3.8 billion acquisition of Narragansett by March 2022.

“The transition teams for both PPL and National Grid have been formed and have actively been planning to ensure a seamless transition for both employees and Rhode Island customers upon approval and closing of the transaction,” Sorgi said.

The companies filed a petition Tuesday seeking approval from the Rhode Island Division of Public Utilities to acquire Narragansett. Sorgi said the petition highlights PPL’s operations in different regions of the country and the opportunities to help Rhode Island achieve green energy mandates, including net-zero carbon emissions by 2050 and 100% renewable energy by 2030. (See RI Seeks to Lead with 100% Renewable Goal.)

Sorgi said PPL has had “very constructive discussions” with public officials in Rhode Island since the announcement of the acquisition about why the company is “uniquely positioned” to own the Narragansett assets.

“These interactions have only strengthened my belief that PPL is well positioned to drive real value for Rhode Island customers and their communities and to play a key role in helping the state achieve its ambitious decarbonization goals,” Sorgi said.

PPL intends to take its experience in deploying smart grid technology, such as dynamic line ratings, in Pennsylvania and bring it to Rhode Island, Sorgi said. It is also committed to have a Rhode Island-based president of Narragansett.

Leadership Changes

Sorgi also highlighted some of the recent leadership changes at PPL, saying they were made to “help further position the company for long-term success” as it integrates Narragansett.

The company announced last month that Gregory Dudkin, PPL Electric Utilities president since 2012, was elected executive vice president and chief operating officer of PPL. Stephanie Raymond, vice president of distribution operations, succeeded Dudkin as president of PPL Electric Utilities.

In his new position, Dudkin reports to Sorgi and oversees PPL’s regulated utility operations in the U.S. Dudkin has also been tasked with overseeing the regulatory process in the acquisition of Narragansett.

“I’m very excited about the strong leadership team we’ve assembled at PPL,” Sorgi said. “I believe it’s the right team at the right time as we strategically reposition PPL for long-term growth and success.”

Earnings

PPL’s first-quarter earnings fell substantially as it continues to finalize the two utility deals. The company posted a net loss of $1.84 billion (-$2.39/share), compared to a profit in the same period last year of $554 million ($0.72/share). Adjusting for the loss from discontinued operations in the U.K. business, however, and the company earned $219 million ($0.28/share), compared to $206 million ($0.27/share) last year.

“These results were in line with our expectations for the quarter,” Sorgi said.

Revenue for the quarter was $1.5 billion, slightly above last year’s first quarter.

The price of PPL’s shares was down slightly at the close of the market on Thursday, falling 8 cents to $28.84.