AltaGas, WGL and the other settling parties
notified the DC PSC today that they accepted the Commission’s
conditions, clearing the way for the closing of the transaction,
Friday, July 6, 2018
WGL Holdings, Inc. (NYSE:WGL) and AltaGas Ltd. (TSX:ALA)
announced today that they and the other parties to their unanimous
settlement agreement signed in May have accepted the conditions
imposed by the Public Service Commission of the District of
Columbia (DC PSC). The Commission unanimously approved the
settlement agreement June 28 and issued its order on June 29. The
acceptance of the conditions completes the final step in the
regulatory review process, allowing the companies to move forward
with closing the $4.5 billion transaction on Friday, July 6,
2018.
Together, the combined energy companies will be in a stronger
position to deliver exceptional service at affordable rates, invest
more in the community, provide additional clean energy choices to
customers, and add good, secure jobs in Washington, D.C., Maryland
and Virginia. Overall, AltaGas will provide more than $138 million
in customer benefits across all three jurisdictions as part of the
merger.
“We are pleased to announce that the Public Service Commission
of the District of Columbia has approved our acquisition of WGL
after a rigorous regulatory review process,” said Mr. David Harris,
President and Chief Executive Officer of AltaGas. “The conditions
crafted by the Commission are in alignment with the unanimous
settlement agreement and the commitments made by AltaGas to
safeguard and advance the public interest. This approval is the
final one in a very comprehensive regulatory process, which
required six key regulatory approvals including the states of
Maryland and Virginia, as well as the District of Columbia.
“As we look forward, we see significant opportunity to be at the
forefront of the new energy economy. The combination of AltaGas and
WGL is a powerful one, with a North American footprint comprised of
over $20 billion of high quality, low-risk and long-lived
infrastructure assets, and one which provides meaningful benefits
for both customers and shareholders,” concluded Mr. Harris.
“This merger brings together two complementary energy companies
that will deliver more value for customers by providing a variety
of energy products and services and investing in the communities we
serve,” said Mr. Terry McCallister, Chairman and CEO of WGL
Holdings, Inc., the parent company of Washington Gas. “We
appreciate the Public Service Commission’s thorough consideration
of the many positive benefits this merger brings to the District
during its review process. We believe that 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 District and the region for years to come.”
WGL shareholders approved the merger in May 2017. Regulatory
approvals also have been issued by Maryland, Virginia, the Federal
Energy Regulatory Commission, the Federal Trade Commission, the
Department of Justice, as well as the Committee on Foreign
Investment in the United States, in addition to the DC PSC.
The DC PSC voted unanimously in favor of the merger on June 28,
2018. According to the final order issued by the Commission,
AltaGas and WGL will provide about $41 million in direct benefits
to D.C. residents, businesses and the D.C. community,
including—
- $20.4 million in rate credits for
residential customers resulting in a $150 credit for each D.C.
residential heating customer.
- $5.4 million for one-time rate credits
for non-residential customers in D.C.
- $6 million to support workforce
development initiatives in D.C., such as the Mayor’s D.C.
Infrastructure Academy.
- $4.2 million for energy efficiency
improvements for low-income qualified residential customers,
including those who live in multi-family buildings.
- $4 million to repair non-hazardous gas
leaks more quickly.
- Develop a new 10MW electric grid energy
storage or Tier 1 Renewable Resource in the District of Columbia,
using best efforts to target the project in capacity constrained
electric distribution areas, with a commitment that the operation
of such facility will provide jobs for D.C. residents.
The companies have also made commitments to support all
Washington Gas’ service territories in the District of Columbia,
Maryland, and Virginia, including—
- $12 million in charitable contributions
and local community support in the Washington, D.C., metropolitan
area over the next 10 years, with at least $210,000 in
contributions annually to organizations serving D.C.
residents.
- $1.5 million over five years to help
pay gas bills for Washington Gas low- and moderate-income
customers, with at least $260,000 dedicated solely to D.C.
residents, administered through the Washington Area Fuel Fund.
- $2.4 million over five years to add an
additional Pipeline Damage Prevention Trainer/Educator in each
jurisdiction.
- $350,000 in incremental funding for
pipeline damage prevention awareness and education across all three
Washington Gas jurisdictions.
- $450,000 for a renewable bio natural
gas study.
In its efforts to ensure that ratepayers are well served by the
merger, the Commission outlined additional conditions, which were
consistent with the commitments proposed in the unanimous
settlement agreement by AltaGas, WGL and other parties.
McCallister reinforced the many positive aspects of this
combination for customers and the local community, emphasizing that
Washington Gas will retain its name, operate as a business unit of
AltaGas, and will continue to deliver affordable, reliable,
high-quality energy services that customers have experienced in the
company’s 170-year history serving the District of Columbia.
“We will ensure a smooth transition process so that customers
can look forward to enjoying the same exceptional level of service
from our committed employees, and to receiving dependable energy
services for many years ahead,” McCallister said. “We will continue
to be based in Washington, D.C., and will maintain our current
facilities in the District, including walk-in offices, as we build
a bigger, better and brighter future together in the D.C.
region.”
Upon today’s filing with the Commission of full acceptance of
the its order with conditions, and pursuant to the companies’
original merger agreement, AltaGas and WGL expect to close the
transaction on July 6, 2018.
The following is a timeline of the approvals received throughout
the regulatory review process:
Shareholders
- Approval from WGL Holdings, Inc.
shareholders on May 10, 2017
Federal
- Approval from the Federal Energy
Regulatory Commission (FERC), an independent agency that regulates
the interstate transmission of natural gas, electricity and oil, on
July 6, 2017
- Expiration of the waiting period as of
July 17, 2017, pursuant to the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 (HSR Act), when the merger was deemed
approved by the Federal Trade Commission and the Department of
Justice
- Approval from the Committee on Foreign
Investment in the United States (CFIUS) on July 28, 2017
State
- Approval from the Virginia State
Corporation Commission on October 20, 2017
- Approval from the Maryland Public
Service Commission on April 4, 2018
- Approval from the Public Service
Commission of the District of Columbia on June 29, 2018.
About WGL
WGL (NYSE: WGL), headquartered in Washington, D.C., is a leading
source for clean, efficient and diverse energy solutions. With
activities and assets across the U.S., WGL consists of Washington
Gas, WGL Energy, WGL Midstream and Hampshire Gas. WGL provides
natural gas, electricity, green power and energy services,
including generation, storage, transportation, distribution, supply
and efficiency. Our calling as a company is to make energy
surprisingly easy for our employees, our community and all our
customers. Whether you are a homeowner or renter, small business or
multinational corporation, state and local or federal agency, WGL
is here to provide Energy Answers. Ask Us. For more information,
visit us at www.wgl.com.
Forward-Looking
Statements
This news release and other statements by us include
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 with respect to the merger
with AltaGas and other expectations. Forward-looking statements are
typically identified by words such as, but are not limited to,
"estimates," "expects," "anticipates," "intends," "believes,"
"plans," and similar expressions, or future or conditional verbs
such as "will," "should," "would," and "could." Although we believe
such forward-looking statements are based on reasonable
assumptions, we cannot give assurance that every objective will be
achieved. Forward-looking statements speak only as of the date of
this release, and we assume no duty to update them. Factors that
could cause actual results to differ materially from those
expressed or implied include, but are not limited to, general
economic conditions, litigation related to the merger with AltaGas,
the potential loss of customers, employees or business partners as
a result of the merger and the factors discussed under the "Risk
Factors" heading in our most recent annual report on Form 10-K and
quarterly reports on Form 10-Q and other documents that we have
filed with, or furnished to, the U.S. Securities and Exchange
Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180702005968/en/
WGL Holdings, Inc.News Media:Brian Edwards,
202-624-6620orFinancial Community:Douglas Bonawitz,
202-624-6129
Wgl (NYSE:WGL)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Wgl (NYSE:WGL)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024