UIL Holdings to acquire Philadelphia Gas Works

Mayor Michael Nutter has announced an agreement to sell the assets of Philadelphia Gas Works to UIL Holdings Corp. of New Haven, Conn. for 1.86 billion.

Nutter said the contract, if approved by the City Council and state Public Utility Commission, will inject at least $424 million into the city's pension fund, which is now less than 50 percent funded.

The administration said the contract requires that all PGW employees be offered employment at UIL, with total employment not to dip below 1,350 employees for at least three years.

Officials said PGW is the nation's largest municipally owned gas utility with more than 500,000 residential, commercial and industrial customers and more than 1,600 employees.

UIL serves about 706,000 electric and natural gas customers in Connecticut and Massachusetts.

Source: Newsworks