PROVIDENCE – The disputed sale of Rhode Island’s primary utility business is back before the R.I Superior Court after reaching a deal in Massachusetts.
Massachusetts Attorney General Maura Healey on Tuesday announced a settlement with National Grid that ends her appeal of the proposed sale of Narragansett Electric Co. to Pennsylvania-based PPL Corp. The sale now returns to R.I. Superior Court, where R.I. Attorney General Peter F. Neronha also sought to press pause and seek further review of the transaction.
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R.I. Superior Court Associate Justice Brian Stern is expected to issue a decision on the motion for stay – preventing the two companies from closing their transaction – later this week, according to Craig Berke, a spokesman for the R.I. Judiciary.
The R.I Office of the Attorney General was one of several consumer and environmental groups concerned with the sale, fearing it would increase costs for ratepayers and that PPL did not have the experience needed to meet Rhode Island’s ambitious renewable energy goals.
Despite these concerns, the R.I. Division of Public Utilities and Carriers in February approved the deal, finding the proposal met the criteria set forth in state law. It also rebuffed advocacy groups’ requests for further analysis about rate hikes and environmental impacts, saying state laws did not “justify or require” such evaluations.
A day later, the R.I. attorney general’s office filed an appeal and stay motion in R.I. Superior Court, seeking further review of the division’s decision. An initial court decision on the request to stay in Rhode Island was put off amid developments in Massachusetts, where Healey also attempted to halt the sale.
While the deal primarily affects Rhode Island customers, the Mass. Department of Public Utilities was also required to sign off because National Grid is a holding company with subsidiaries in Massachusetts.
National Grid in May 2021 asked Massachusetts regulators for a waiver that would exempt the sale from a more thorough review in the Bay State, since the deal was not expected to affect Massachusetts ratepayers, according to its petition. Massachusetts regulators in July agreed to the waiver, which the Mass. Attorney General’s Office then appealed, saying the state regulators did not meet the legal requirements to grant such a waiver and asking the courts to freeze the waiver approval to give time for more review.
The case was originally slated to be heard before the Massachusetts Supreme Judicial Court in May, but is effectively over under the settlement reached Tuesday.
Per the terms of the agreement in Massachusetts, National Grid will cover up to $29 million in annual cost increases from the sale, preventing those expenses from being passed on to ratepayers. National Grid has also agreed to give a one-time, $7.9 million credit to customers to cover short-term hikes in service costs and to put $1 million into a state program that helps low-income residents pay their heating bills, according to the agreement.
“Massachusetts families should not be forced to shoulder millions of dollars in extra costs for their utility services from this sale,” Healey said in a statement. “We are pleased to have secured a resolution that not only protects customers from higher rates but provides additional benefits during a time of need.”
Ted Kresse, a spokesman for National Grid, called the decision an “important milestone” toward finalizing the sale, a date for which has not been set he said in an email on Tuesday.
Ryan Hill, a spokesman for PPL Corp, also said the company was pleased with the Massachusetts decision and “remains prepared to close promptly with National Grid as soon as circumstances permit.”
Kristy dosReis, a spokesperson for Rhode Island attorney general’s office, said in an email Tuesday the office will go forward with its appeal “irrespective of the Massachusetts settlement.”
If the sale goes through, PPL will serve roughly 3.5 million electricity and gas customers in the United States, including an estimated 780,000 in Rhode Island.
Nancy Lavin is a PBN staff writer. Contact her at Lavin@PBN.com.
