AltaGas Clears DC Hurdle in WGL Acquisition

Calgary-based midstreamer AltaGas said May 4 it has reached a settlement in principle with key Washington, DC stakeholders in its proposed C$8.4bn acquisition of WGL Holdings, a gas and electric utility operating in the DC region.

The settlement agreement, with the Government of the District of Columbia, the Office of the Peoples’ Counsel, various local unions and other organizations, clears the way for final review and approval by the Public Service Commission of the District of Columbia, the final regulatory approval needed for the acquisition to close. Settlement terms are to be provided to the commission by May 8.

“We are very pleased to have reached settlement terms in principle in the District of Columbia that meet our expectations,” AltaGas CEO David Harris said. “Together, AltaGas and WGL will be in an even stronger position to deliver exceptional service at affordable rates, more investment in the community and workforce training programs, more clean energy choices for customers, and good, secure jobs.”

The combination of AltaGas and WGL Holdings will create an entity with more than $20bn in energy infrastructure assets – including the Mountain Valley Pipeline in Virginia and West Virginia and a gas supply agreement associated with the Dominion Energy Cove Point LNG terminal in Maryland – and an enterprise value of more than $17bn. It has some $4.5bn in secured growth projects and about $1.5bn of additional growth opportunities in advanced stages of development through 2021.

The merger is expected to close in the first half this year.