Utility giant Eversource says it will pay $1.1 billion to acquire a Massachusetts natural gas company that was forced onto the selling block for causing a series of deadly gas explosions in 2018.
Eversource, co-headquartered in Hartford and Boston, late Wednesday announced its plans to acquire Columbia Gas of Massachusetts (CMA) from parent NiSource Inc. Eversource said it will finance the transaction, expected to be completed by the end of the third quarter, with new equity and debt.
The Massachusetts Department of Public Utilities and the U.S. Justice Department must sign off on the deal before it’s completed, according to Eversource.
CMA, which serves 330,000 natural gas customers in more than 60 towns and cities in Massachusetts, made headlines in Sept. 2018, when one of its gas lines caused a series of explosions and fires in Merrimack Valley.
The gas explosions killed one person, injured 22 people and damaged about 131 homes and businesses in Andover, North Andover and Lawrence, Mass., according to U.S. Attorney for Massachusetts Andrew Lelling. The company has said the fires were caused by over-pressurized gas mains in South Lawrence.
CMA took responsibility for the gas explosions on Wednesday as part of a plea deal with the U.S. Attorney’s Office that charges the company with paying a criminal fine of more than $53 million. CMA’s operations will also be monitored over the next three years to ensure it complies with federal and state safety regulations, Lelling said.
The U.S. Attorney’s Office also entered into an agreement with NiSource, which forces the Indiana parent to sell CMA and forfeit any profit from the sale and implement safety standards recommended by the National Transportation Safety Board.
Liabilities related to the 2018 incident in Merrimack Valley will remain the responsibility of NiSource, Eversource said in a news release.
“We have a strong track record of investing in infrastructure to significantly improve the reliability and safety of our systems,” said Eversource Gas President Bill Akley.
Eversource has 300,000 natural gas customers and 1.5 million electric customers in 51 municipalities in Massachusetts.
