New Haven utility parent UIL Holdings has agreed to remit $83.6 million in payments and credits and hire 150 jobs, among other concessions, in order to obtain approval for its $3 billion merger from Connecticut regulators.
The concessions come after the Connecticut Public Utilities Regulatory Authority in June initially denied UIL’s application for a merger with Spanish utility giant Iberdrola, over concerns the transaction would not benefit Connecticut ratepayers.
Last week, UIL detailed its plan to spend at least $30 million to clean up its former English Station power plant in New Haven, in order to appease the concerns of environmental advocates. Now, UIL has detailed to its shareholders its other concessions to Connecticut officials in order to obtain the PURA approval, according to regulatory filings:
- A $20 million rate credit to customers of its Connecticut Natural Gas, Southern Connecticut Gas and United Illuminating subsidiaries, all coming on the third full month following the merger;
- $12.5 million in additional rate credits to CNG customers over 10 years;
- $7.5 million in additional rate credits to SCG customers over 10 years;
- $1.6 million in savings for SCG customers resulting from accelerating pipe replacements;
- Rate freezes for UI until 2017 and CNG and SCG until 2018;
- $2 million annually for three years for the Department of Energy & Environmental Protection to stimulate investment in clean energy;
- Hiring 150 people in Connecticut over three years;
- Maintaining its corporate headquarters and operations in Connecticut;
- Maintaining charitable giving and job levels in Connecticut;
- $5 million in customer benefit by limiting recovery of $50 million in storm resiliency upgrades;
- $1 million in Connecticut disaster relief funds;
- Maintaining the financial stability of UIL and its utilities.
