US-BASED National Grid, a wholly-owned subsidiary of the UK company of the same name, is paying $575 million to Southern Union Co for the Rhode Island natural gas business and assets of the New England Gas Co.
The deal includes assumption of $77 million of debt, National Grid said in February.
Proceeds from the sale will be used to retire a portion of the bridge facility financing for the acquisition of Sid Richardson Energy Services, which is slated for an early March closing, said Southern Union, which will retain New England Gas Co's North Attleboro and Fall River, Massachusetts operations. New England Gas distributes natural gas to about 245,000 customers in 33 Rhode Island communities via a network of more than 34800km of mains.
In the US, National Grid transmits and distributes electricity and natural gas to nearly 4 million customers across 29,000 square miles of Massachusetts, New Hampshire, New York and Rhode Island. In Rhode Island, National Grid delivers electricity to 477,000 customers in 38 communities.
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