Agreement further demonstrates PPL's commitment to
Rhode Island customers and enables
PPL to close promptly on the transaction
ALLENTOWN, Pa., May 23, 2022
/PRNewswire/ -- The Rhode Island Superior Court today cleared the
way for PPL Corporation (NYSE: PPL) to acquire The Narragansett
Electric Company from National Grid USA following a settlement agreement between
PPL and the Rhode Island attorney
general's office.
The Superior Court issued orders dismissing the attorney
general's appeal of an earlier order from the Rhode Island Division
of Public Utilities and Carriers approving the acquisition and
lifting the court's stay of the approval order. The orders, which
followed joint motions by the parties to the appeal, now enable PPL
and National Grid to close promptly on the transaction.
As part of PPL's settlement agreement with the attorney general,
PPL has agreed to:
- Provide $50 million in bill
credits to Narragansett Electric customers, both gas and
electric.
- Seek Rhode Island Public Utility Commission (RIPUC) approval to
forgive more than $43 million in
arrearages for low-income and protected customers (approximately
$21 million of which is already
reserved on Narragansett Electric's books).
- Forgo the potential recovery of transition costs associated
with the acquisition and integration of Narragansett Electric,
which PPL had already capped in its prior commitments.
- Write off and not seek recovery of more than $20 million in current regulatory assets on
Narragansett Electric's books. The regulatory assets are related to
information technology and cyber costs incurred by National Grid
that will not be used by PPL following the transition period.
In addition to the above commitments, PPL will not seek any base
rate increases for at least three years after the transaction
closes and until there has been at least 12 months of operating
experience under PPL leadership following termination of the
transition services agreements with National Grid.
PPL also has agreed to additional actions that reinforce the
company's strong commitment to grid modernization and
decarbonization. PPL will prepare and submit an Act on Climate
Report within one year of the acquisition to the RIPUC and attorney
general's office. The report will provide input to the Rhode Island
Executive Climate Change Coordinating Council as the council
develops plans to implement the state's Act on Climate.
PPL will also make a $2.5 million
contribution to the Rhode Island Commerce Corporation's Renewable
Energy Fund and make available an additional $2.5 million to the attorney general's office to
use, if the office deems necessary, to evaluate Narragansett
Electric's Act on Climate Report or participate in any future RIPUC
proceeding that might be conducted to assess the future of the gas
distribution business.
"We're pleased we've achieved this outcome, which further
underscores PPL's steadfast commitment to Rhode Island customers and to advancing the
state's ambitious decarbonization goals," said Vince Sorgi, PPL president and chief executive
officer.
"We have said throughout the approval process that PPL would
bring clear value to Rhode Island,
and the additional commitments announced today will provide direct
and indirect benefits to customers that we believe will form the
basis of a constructive and long-lasting presence in the state,"
said Sorgi. "At the same time, the acquisition will provide PPL
with a more diversified portfolio of assets, reduce the proportion
of revenues derived from coal generation as part of our business
mix, and create additional opportunities to invest in a sustainable
energy future."
PPL said it expects to complete the acquisition this week and
will announce the completion upon close. Upon closing, PPL will
also announce the date and time of an investor day, during which
PPL will provide details of its overall strategy, its clean energy
transition strategy, its investment plans, as well as its plans to
achieve competitive long-term earnings per share and dividend
growth while maintaining one of the strongest balance sheets in the
U.S. utility sector.
About PPL
PPL Corporation (NYSE:PPL), based in Allentown, Pennsylvania, is a leading U.S.
energy company focused on providing electricity and natural gas
safely, reliably and affordably to 2.5 million customers in the
U.S. PPL's high-performing, award-winning utilities are addressing
energy challenges head-on by building smarter, more resilient and
more dynamic power grids and advancing sustainable energy
solutions. For more information, visit www.pplweb.com.
Note to Editors: Visit our media website at
www.pplnewsroom.com for additional news about PPL
Corporation.
Contacts:
|
For news media: Ryan
Hill, 610-774-5997
|
|
For financial analysts:
Andy Ludwig, 610-774-3389
|
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SOURCE PPL Corporation