Proposed PGW sale still alive

Posted: July 18, 2014

UIL HOLDINGS CORP., the proposed buyer of the Philadelphia Gas Works, announced yesterday that it is not ready to walk away from the $1.86 billion deal.

According to its tentative agreement with Mayor Nutter's administration, UIL could legally abandon the deal if it wasn't approved by City Council and the state Public Utility Commission by July 15, which was Tuesday.

In a statement, CEO James Torgerson said UIL would continue to pursue the purchase, the proceeds of which Nutter hopes to send to the city's pension fund.

"UIL will continue to evaluate the situation and take additional actions as appropriate," he said.

Despite Nutter's urging, Council has not introduced a bill on the issue. The PUC process will take eight to 10 months after the city submits an application.

Nutter said in a statement yesterday that the "issue is squarely in front of City Council and both the company and our administration have been providing voluminous amounts of information."

Council is waiting for Concentric Energy Advisors, a consultant it is paying more than $500,000, to produce reports on the proposed deal and on alternatives to selling PGW.

In a statement, Council President Darrell Clarke said that Tuesday's deadline "was not set in consultation with City Council and did not consider Council's duty to fully examine the details of this proposed transaction."


On Twitter: @SeanWalshDN

Blog: ph.ly/PhillyClout

comments powered by Disqus
|
|
|
|
|