Iberdrola USA and UIL Holdings Corp. have entered into a definitive agreement under which Iberdrola will acquire UIL and create a newly listed, public company.
The agreement, which has been approved by both companies' boards of directors, will create a diversified utility company in the Northeast. James P. Torgerson, UIL's current president and CEO, will become the CEO of the new company when the deal closes.
According to Iberdrola, the deal creates a larger, more diversified power and utility company with seven regulated electric and gas utilities in complementary geographies: Iberdrola USA's New York State Electric & Gas, Rochester Gas & Electric and Central Maine Power combined with UIL's United Illuminating, Southern Connecticut Gas, Connecticut Natural Gas and Berkshire Gas.
The combined company will serve 3.1 million electric and gas customers across New York, Connecticut, Maine and Massachusetts. It will also have a highly contracted, 6.5 GW, primarily renewables portfolio, which includes the second-largest operating wind portfolio in the U.S., and a total pipeline of over 6 GW.
A vast majority of Iberdrola USA's current renewable generation portfolio is contracted to utilities under long-term agreements, and approximately 95% of the combined company's gross margin is projected to come from regulated operations or contracted generation.
The combined entity will have a rate base of approximately $8.3 billion and expects to invest $6.9 billion in regulated electric and gas infrastructure and other capital expenditures over the next five years.