PPL purchase of Rhode Island's main power company paused 

Following a decision by the Bay State’s top court, the finalization of the $5.3 billion sale of Rhode Island’s primary power company has been halted. 

“The closing on the sale of Narragansett Electric to PPL has been put on hold by the Massachusetts Supreme Judicial Court,” according to Kristy dosReis, spokeswoman for Attorney General Peter F. Neronha.

“The Attorney General looks forward to the opportunity to fully argue its appeal before the Superior Court.” 

Two weeks ago, the Rhode Island Division of Public Utilities and Carriers (RIDPUC) approved the sale of Narragansett Electric Company (NEC), which provides power to nearly every electric customer in the Ocean State. In an attempt to stop the sale, Neronha’s office filed an appeal, arguing the transaction may not be “in the best interest of Rhode Islanders.” 

Nearly all Rhode Island power customers buy electricity from a single source, the NEC, currently owned by National Grid. The Allentown, Pennsylvania based PPL Corporation (NYSE:PPL) released a statement in response to the Massachusetts Supreme Judicial Court decision.  

“Today, the Supreme Judicial Court of Massachusetts issued a stay of a July 2021 order by the Massachusetts Department of Public Utilities (DPU) that had cleared the way for National Grid USA, which is headquartered in Massachusetts, to complete the sale of The Narragansett Electric Company to PPL. Narragansett Electric’s operations are solely within Rhode Island,” according to PPL. “The stay follows an appeal by the Massachusetts attorney general challenging the DPU’s order. The stay will remain in effect until further order by the court.” 

PPL, formerly known as Pennsylvania Power & Light, wants to buy NEC from its current owner, National Grid. PPL received unanimous approval from the Federal Energy Regulatory Commission (FERC) to acquire NEC from National Grid USA in September 2021, for $5.3 billion.  

“We remain confident the court will find that the Massachusetts Department of Public Utilities correctly issued the waiver and that the transaction can move forward,” according to PPL’s statement. “In the meantime, we continue to plan for a successful outcome and completion of the Narragansett acquisition. We will be prepared to close quickly with National Grid at the appropriate time. And we’re excited about the opportunity to invest in Rhode Island’s future and to work with the talented team at Narragansett Electric to drive significant value for Rhode Island families, businesses and communities. We do not intend to comment further on the appeal at this time.” 

Witnesses for PPL and the opposition delivered testimony before the Rhode Island Division of Public Utilities and Carriers (RIDPUC) from Monday, Dec. 13, through Thursday, Dec. 16, 2021. The agency performed “a thorough examination of the record that included participation of nine parties, 17 witnesses who offered testimony, thousands of pages of discovery, four public hearings, many public comments, post hearing briefs, and reply briefs,” according to Thomas F. Kogut, RIDPUC Associate Administrator. 

The agency ultimately approved the sale in February, and Neronha filed a lawsuit to stop it. 

“My Office has filed a motion in Rhode Island Superior Court to appeal and stay (the Feb. 23) decision by the Division of Public Utilities and Carriers to approve the sale of Narragansett Electric to Pennsylvania-based PPL,” Neronha said in a statement on Thursday, Feb. 24. “This proposed transaction would have enormous consequences for all Rhode Islanders, and we will continue to advocate to ensure an electric and gas utility that is in the best interests of Rhode Islanders and that complies with Rhode Island law.” 

Massachusetts-based National Grid USA cleared Bay State regulators when they waived oversight of the transaction. However, Massachusetts Attorney General Maura Healey opposed the decision, requesting a stay from the Supreme Judicial Court, which was granted last week. Massachusetts’ highest court may decide the case as soon as May, and in the meantime Neronha’s challenge will hang in the balance. 

“Important development,” Neronha Tweeted from his personal Twitter account on March 3. “Now more likely this change of utility ownership will get full court review. By law regulators aren›t the last word — courts are. Trying to ram a transaction through on regulator approval alone before judicial review can happen says a lot. None of it good.”