Connecticut Attorney General Richard Blumenthal said Wednesday he opposes the parent company of electric utility United Illuminating’s proposed $1.3 billion acquisition of three New England natural gas companies.
Blumenthal said Wednesday UIL Holding’s acquisition of Connecticut Natural Gas, Southern Connecticut Gas and Berkshire Gas Co. in Massachusetts from Spanish energy giant Iberdrola SA should only be approved if ratepayers are protected from rate increases.
“We are seeking an iron-clad promise of protection that ratepayers will be better off — not burdened — by this merger,” Blumenthal, who is a U.S. Senate candidate, said in a statement. “UIL should be required to shield ratepayers from rate increases, share benefits and provide improved service as a result of its takeover of the gas companies. The companies have so far failed to offer any real benefits to consumers, such as cost savings or improved service.”
The parent company of the state’s largest electric utility — Connecticut Light & Power — already owns a natural gas company, Yankee Gas.
On Tuesday, New Haven-based UIL Holdings readied its offer of $470 million worth of stock to finance its acquisition of the trio. The registered public offering covers 17.7 million shares of common stock, and the company expects to grant its underwriters an additional option of 2.7 million common shares.
Announced last May, the acquisitions to be completed in the first quarter of 2011 will more than double UIL’s customer base from 324,000 to 694,000.
