The Maryland Public Service Commission in the US has approved the merger of Washington-based clean energy solutions provider WGL Holdings with Canadian clean energy provider AltaGas.
The Commission anticipates that the $4.2bn merger would deliver additional value to the Maryland customers, and create more investment opportunities in energy infrastructure and clean energy across the state.
WGL Holdings chairman and CEO Terry D McCallister said: “We are confident that our combination with AltaGas will benefit residents, businesses and the economy of Maryland.
“We appreciate the Commission’s careful consideration of the many positive benefits this merger brings to the state as they thoroughly evaluated our application. We are reviewing the Commission’s final order and will provide our joint response as soon as possible.
“Washington Gas will be an even stronger company as part of the AltaGas family and the new resources available as part of this combination will provide benefits for the state for years to come.”
The Maryland Public Service Commission voted 4:1 in favour of the merger, as well as released the final order, where AltaGas and WGL will have to provide a wide range of benefits that include $30.5m for a one-time $50 rate credit for Maryland residential heating customers and a rate credit for non-residential customers.
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The two companies have agreed to offer $22.8m to Montgomery and Prince George’s counties for educational, workforce development and energy-efficiency programmes, as well as $100m to expand natural gas infrastructure in the state of Maryland.
WGL and AltaGas have also committed to supporting all Washington Gas’ service territories in Maryland, Virginia and the District of Columbia.
AltaGas president and chief executive officer David Harris said: “We are pleased that the Maryland Public Service Commission has approved our acquisition of WGL.
“This marks another major milestone in bringing together AltaGas and WGL to deliver long-term value to customers and shareholders alike as we build a stronger future together.”
The commission has set a timeframe until 16 April and asked the two companies to reveal their decision in the specified time period.
Until now, the merger received approval from the Federal Energy Regulatory Commission, the Federal Trade Commission, the Department of Justice, and the Committee on Foreign Investment.