Significant Milestone Reached to Bring Cleaner, More Affordable Energy to the Region
On April 6, AltaGas and WGL accepted the conditions set forth by the Maryland Public Service Commission (MD PSC) following a thorough and comprehensive public process that resulted in a f 4 to 1 favorable decision approving the proposed merger of AltaGas and WGL.
The approval of the acquisition by the MD PSC marks another significant milestone in bringing AltaGas and WGL together to deliver long-term value to the region. In addition to the Maryland decision, the Virginia State Corporation Commission has approved the merger and all federal reviews have been completed. The regulatory review of the merger before the District of Columbia Public Service Commission is continuing.
“AltaGas and WGL accepted the conditions set forth by the MD PSC as they were consistent with the full suite of merger commitments presented during the public process,” said John O’Brien, President, AltaGas Services U.S. “Both AltaGas and WGL bring complementary strengths to the table that will strategically position the combined company for the future, delivering more value for customers in Washington Gas’ service territory and more investment in energy infrastructure and clean energy.”
Following completion of the merger, Maryland customer and community benefits will include:
- $30.5 million for a one-time $50 rate credit for Maryland residential heating customers and a rate credit for non-residential customers. In addition, the companies committed that operational savings resulting from the merger will be passed through to customers.
- 22.8 million to Montgomery and Prince George’s counties for customer, educational, workforce development and energy efficiency programs, with at least 20 percent of such funds directed to benefit low- and moderate-income residents in both single- and multifamily communities.
- $100 million to expand natural gas infrastructure in the state of Maryland:
- $70 million over 10 years in the Washington Gas service area (which will be included in the Washington Gas’ rate base, subject to Commission approval).
- $30.32 million to promote economic development, job creation and the expansion of natural gas infrastructure to underserved parts of Maryland, with a majority of this funding dedicated to the Washington Gas’ service territory.
- New Renewable Energy Resources developed in Montgomery and Prince George’s counties.
- AltaGas' U.S. power business head office will be relocated to Prince George’s County.
- $4 million to further enhance safety.
- Washington Gas has committed to continue its supplier diversity efforts and has set an aspirational goal to increase its share of non-gas spending with diverse suppliers to 35 percent over the next ten-years.
In the District of Columbia, AltaGas and WGL are continuing to work constructively with the District of Columbia Public Service Commission (DC PSC) and other parties involved in the regulatory proceedings to ensure customers benefit, existing jobs are protected, new jobs are added and support for clean energy is advanced. A final decision from the DC PSC on the combination is expected by mid-2018.
As of April 4, 2018, the combination has received the following approvals:
- Approval from WGL Holdings, Inc. shareholders on May 10, 2017.
- 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; and
- Approval from the Committee on Foreign Investment in the United States (CFIUS) on July 28, 2017.
- Approval from the Virginia State Corporation Commission on October 20, 2017.
- Approval from the Maryland Public Service Commission on April 4, 2018.
- A final decision from the District of Columbia, Public Service Commission on the combination is expected by mid-2018.