Iberdrola deal to finance $1.4B Maine power grid upgrade
Posted by CITIZEN POWER ALLIANCE at 8:34 AMThe parent company of New York State Electric & Gas is selling three natural gas utilities in New England to help pay for a $1.4 billion power grid upgrade in Maine that's aimed at assuring reliability and creating capacity for future wind power projects in the state.
Utility company UIL Holdings said Tuesday that it will buy Southern Connecticut Gas Co., Connecticut Natural Gas Corp. and the Berkshire Gas Co. from Iberdrola USA for $885 million. Under the deal, which is expected to close by early next year, UIL Holdings also will take on about $411 million in debt.
Iberdrola USA said the deal will help fund its Central Maine Power's first major grid upgrade in three decades.
Construction is expected to start in June and end in 2015.
"The investment will serve to continue guaranteeing electricity network reliability for customers in Maine and the New England region, providing it with the necessary capacity to incorporate new renewable energy sources," said Michael McClain, who's overseeing the project for Iberdrola.
(Click to read the entire article)