UIL Holdings, the parent company of United Illuminating and other state utilities, has received approval from the Massachusetts Department of Public Utilities to merge with Iberdola USA. That follows on the heels of Connecticut’s approval last week.
The Connecticut Public Utilities Regulatory Authority gave final approval on Dec. 9 to the $3 billion merger of UIL Holdings Corp. and the U.S. subsidiary of Spanish utility giant Iberdrola. The companies have said they hope to close the deal by the end of this month.
Iberdrola said the deal will create a diversified power and utility company with seven regulated utilities operating in four Northeast states and combined revenue of approximately $2 billion. The combined entity will also have the second-largest wind generation portfolio in the United States.
The new entity, which will be 85-percent owned by Iberdrola USA, has committed to $40 million in ratepayer credits, $45 million in potential avoided cost recoveries related to infrastructure improvements, and $39 million in charitable contributions.
The proposed deal was first announced in February. UIL is the parent company for United Illuminating, Connecticut Natural Gas and Southern Connecticut Gas. It also owns Berkshire Gas Co. in Massachusetts.