FERC on Thursday approved PPL’s purchase of Narragansett Electric in Rhode Island from National Grid for $3.8 billion, giving the Pennsylvania-based company a foothold in ISO-NE (EC21-87).

The commission found that the transaction would not have any effect on horizontal or vertical market power, nor would it have an adverse effect on rates. It made the latter determination over the protest of Rhode Island Attorney General Peter Neronha, who argued that PPL and Narragansett did not include enough information in their application. FERC did not directly address this argument, but it pointed to the companies’ five-year hold-harmless commitment as enough to satisfy its analysis of the deal’s impact on rates.

Neronha also protested the fact that the application did not contain information as to how PPL would continue to support Rhode Island’s climate goals, such as home energy-efficiency programs. FERC agreed with PPL that this was not relevant to the transaction. For its part, PPL said that Narragansett would continue to comply with state climate policies.

No other parties challenged any other aspects of the application.

PPL announced the deal in March, along with a separate, $11 billion agreement to sell its U.K. utility business, Western Power Distribution, to the London-based National Grid. (See PPL to Sell UK Business, Acquire Narragansett Electric.) Narragansett is the largest electricity transmission and distribution service provider in Rhode Island, as well as a natural gas distributor, serving about 780,000 customers.

PPL said it expects to complete the transaction by March 2022. It still needs approval from the Rhode Island Division of Public Utilities and Carriers. In its application with the agency, it had asked that a final order be issued by Nov. 1, in time for when heating demand ramps up in the state.

“We’re pleased with FERC’s decision, which puts us one step closer to concluding an acquisition we believe will drive significant value for Rhode Island families and businesses and strengthen PPL,” CEO Vincent Sorgi said in a statement. “As we await final approval, we look forward to partnering with Narragansett Electric’s talented team to deliver energy safely, reliably and affordably to Rhode Island customers.”