Dominion Energy to sell West Virginia natural gas utility to Ullico for $690m
Dominion Energy has signed a deal worth $690 million to divest Hope Gas (Dominion Hope or Dominion Energy West Virginia or DEWV), its West Virginia natural gas utility, to Ullico’s infrastructure fund.
Based in Clarksburg, Dominion Energy West Virginia is claimed to have 111,000 customers. It boasts of 3,200 miles of gas distribution pipelines and over 2,000 miles of gathering pipelines.
The West Virginia natural gas utility has a workforce of nearly 300 people.
Dominion Energy said that it will continue to own and operate the Mt. Storm Power Station, a 1.6GW coal-fired power generation facility, in West Virginia.
Robert M. Blue — Dominion Energy chair, president, and CEO said: “For nearly 125 years, Dominion Energy West Virginia has provided reliable and affordable natural gas, safely, to the people and businesses of the Mountain State.
“From its roots as the Flaggy Meadow Gas Co., DEWV has been a pioneer in the natural gas sector, taking part in the construction of one of America’s first interstate pipelines, which originated in Wetzel County, and building our country’s first extraction plant at Hastings.”
Dominion Energy to sell West Virginia natural gas utility to Ullico for $690m. Photo courtesy of Tim Evanson/Wikimedia Commons.
Ullico’s infrastructure business intends to integrate Dominion Energy West Virginia with its portfolio company Hearthstone Utilities, which owns and operates gas utilities in Indiana, Montana, Maine, Ohio, and North Carolina.
Hearthstone Utilities is said to cater to over 80,000 customers. As part of the agreement, the company will relocate its headquarters to West Virginia.
Morgan O’Brien — Hearthstone Utilities president and CEO said: “We are excited about the opportunity to continue to build on and invest in this important and valuable West Virginia company.
“Our vision is to grow the business and expand the footprint within the state, including to underserved communities. A key component is to establish West Virginia as our foundation for growth in creating new family-sustaining jobs, including bringing new jobs into the state in the first year.”
The deal, which is subject to approval from West Virginia Public Service Commission and other conditions, is anticipated to be wrapped up in the second half of this year.