PPL (NYSE:PPL) on Wednesday officially completed the acquisition of Narragansett Electric (NYSE:NGG) from National Grid, immediately rebranding the utility as Rhode Island Energy.
The acquisition, which had been stalled in court challenges, received the go-ahead on Monday when the Rhode Island Attorney General’s Office withdrew its opposition after reaching a settlement agreement with PPL. (See related story, PPL Reaches Settlement with RI AG for Acquisition of Narragansett.)
“We are pleased to welcome the Rhode Island Energy team into the PPL family of companies, and we consider it an absolute privilege to serve the energy needs of Rhode Islanders,” PPL CEO Vincent Sorgi said. “Since announcing the acquisition in March 2021, we have been working closely with key stakeholders and National Grid in an effort to facilitate a smooth transition of services and to strengthen our understanding of the needs of customers in these communities.”
PPL said the acquisition includes a two-year transition services agreement with National Grid to provide continuity of operations as Rhode Island Energy transitions to the Pennsylvania-based company’s systems and processes.
The utility will be led by Dave Bonenberger, a president based in the state, and more than 1,100 local employees. PPL is also establishing a control center in Rhode Island for the state’s electric and gas operations and a new customer call center.
“No job we do will be more important than delivering for our Rhode Island customers, and we’re pleased to have an experienced team comprised of PPL and former National Grid employees that is committed to providing exceptional service,” Bonenberger said. “The PPL name may be new here in Rhode Island, but our companies have been providing essential energy services to customers in Pennsylvania and Kentucky for over 100 years.”
The acquisition completes the second portion of a deal first announced in March 2021 in which PPL sold its U.K. utility business Western Power Distribution to National Grid for nearly $11 billion. (See PPL to Sell UK Business, Acquire Narragansett Electric.)
PPL said it plans to host a special virtual investor day on June 9 to discuss its business strategy, long-term financial outlook and capital investment plans.
“We are excited to bring to Rhode Island our proven operating model, which emphasizes innovation, customer service and reliability,” Sorgi said.