RI AG Settles On $3.8 Billion Sale Of Narragansett Electric

RHODE ISLAND — Rhode Island Attorney General Peter Neronha reached a settlement tied to his legal challenge against the $3.8 billion sale of Narragansett Electric, National Grid's state gas and electrical operations.

The settlement came three months after Neronha's office tried halting the deal between National Grid and PPL Corp., the Pennsylvania-based energy company who sought to purchase Narragansett Electric.

Neronha originally tried to block the deal, because he said it wasn't clear if the sale would increase costs for Rhode Island customers. Prior to the settlement, Neronha said he was also concerned about storm response, sufficient IT services and whether the company can meet the green energy guidelines laid out in the Act on Climate.

Neronha said in a news conference Monday that the settlement protects ratepayers, while also removing a legal hurdle for the energy companies to complete the sale. The sale will result in PPL gaining 780,000 new customers.

"This is an incredibly important transaction for Rhode Island," Neronha said. "We have secured over $200 million in value for Rhode Islanders."

As part of the settlement, PPL agreed to pay $50 million in bill credits to gas and electric customers, forgive more than $43 million for low-income and other protected customers and give up the ability to recover transition costs associated with the purchase.

Additionally, Neronha required PPL, as the new owner of the state's largest gas and electric utility, to take significant steps in advancing the Rhode Island's Act on Climate goals. Under the agreement, PPL is required to contribute $2.5 million to the Rhode Island Renewable Energy Fund and up to $2.5 million to the Attorney General's Office for retention of outside experts in anticipated Rhode Island energy proceedings that will directly impact Act on Climate Goals