Maryland’s Pubic Service Commission has approved the $4.5 billion acquisition of WGL Holdings Inc., the parent company of Washington Gas, by Canadian energy company AltaGas.
The companies had previously reached a settlement agreement with Maryland’s PSC, but the official approval removes another hurdle to finalize the deal. Virginia and the federal government have already approved.
That leaves the District’s Public Service Commission as the last regulatory agency that needs to weigh in. That commission took about two years to ultimately approve a $6.8 billion merger between Pepco Holdings Inc. and Chicago-based Exelon Corp., resulting in a sometimes acrimonious battle between merger supporters and opponents.
The $87.8 million deal with Maryland includes a number of perks for Washington Gas (NYSE: WGL) customers, including an $8.8 million one-time rate credit to commercial and industrial customers, and $30 million to provide a $50 one-time bill credit for each residential heating customer. It also includes $30.3 million to establish a fund to expand natural gas infrastructure to underserved parts of Maryland.