UIL bails out on PGW purchase
UIL Holdings Corp. decided to terminate its $1.86 billion offer to buy Philadelphia Gas Works (PGW). Under the original agreement the sale would have expired at the end of the year.
James P. Torgerson, president of the New Haven utility operator, stated he was disappointed that no ordinance was introduced in local government to approve the acquisition, according to Philly.com
The billion-plus purchase was part of a two-year effort by Philadelphia Mayor Michael Nutter to privatize the nation's largest municipal gas utility.
"The citizens of our city, the customers of PGW, and our own city workers will feel the negative effects of this terrible indecision for years to come, and ultimately will regret that City Council chose to end a legitimate debate on this issue even before it started," the mayor said.