National Grid Sells Rhode Island Gas, Electric Service

PROVIDENCE, RI — National Grid sold Rhode Island's natural gas and electricity service to a Pennsylvania provider, the company announced Thursday.

Under the agreement, Pennsylvania-based PPL Corporation will acquire Rhode Island's Narragansett Electric Company at a valuation of about $3.8 billion. National Grid, meanwhile, will take over Western Power, the largest electricity provider in the United Kingdom, from PPL for a valuation of $10.8 billion.

Narragansett Electric is Rhode Island's largest service provider, along with a natural gas distribution company. They provide service to about 780,000 Rhode Islanders.

"National Grid and PPL share a purpose-driven culture and core values, which will enable a seamless transition for colleagues, customers, and communities," National Grid said. "Like Narragansett Electric, PPL is committed to providing safe and reliable service for customers, and PPL is consistently ranked among the best utilities in the regions in which it serves."

The transaction must be approved by National Grid shareholders, as well as requires regulatory approval. This is expected within about nine months to a year for Rhode Island service. Once approved, a Transition Services Agreement will be sent to PPL to help ensure a smooth transition for Rhode Island customers and employees. The majority of employees will stay with Narragansett Electric, National Grid said, including union members in UWUA Local 310, UWUA Local 310B and USW Local 12431.

"We are proud of our Narragansett Electric colleagues and their success in building a strong, responsible business," said Badar Khan, the president of National Grid U.S. "Narragansett Electric will be joining a team at PPL that remains safety-driven, locally focused, and committed to the communities we serve. We are confident of a seamless transition, uninterrupted service, and ongoing support of our customers and teams."