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Press Releases
05/23/2016
Merger Commitments Benefiting Customers, Community
Bill credits, clean energy among first steps since creation of AVANGRID
Orange, CT – In December 2015, Connecticut’s Public Utilities Regulatory Authority (PURA) approved the merger between Iberdrola USA and UIL Holdings Company. The new merged company is now named AVANGRID (NYSE: AGR). As part of the merger agreement, a number of commitments by the company were made regarding its operations in Connecticut.
The information below shows the 12 major merger commitments and the status of each individually. AVANGRID has completed several of the commitments and made significant progress on others.
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RATE CREDITS: $20 million rate credit in aggregate to the customers of The United Illuminating Company, Southern Connecticut Gas Company, Connecticut Natural Gas Corporation; $12.5 million and $7.5 million in additional rate credits to CNG and SCG respectively, over the period of 2018-2027.
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STATUS: $20 million credit completed. |
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BASE RATE FREEZES: Assurance of rate stability through distribution base rate freezes for UI until January 1, 2017, and for CNG and SCG until January 1, 2018.
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STATUS: Completed |
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CLEAN ENERGY: $2 million per year for a three-year period in funding for DEEP to stimulate investment in clean energy.
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STATUS: Completed; payment to be issued 2016 |
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JOBS: A commitment to hire 150 people in Connecticut over the next three years.
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STATUS: Underway. Approximately 45 new workers hired as of March 31. |
| ENGLISH STATION: UI is committed to spending $30 million to investigate and remediate certain environmental conditions of the closed English Station power plant in New Haven. |
STATUS: Underway. This week, AVANGRID will issue a request for proposal for a Licensed Environmental Professional (LEP) firm, which will evaluate the site. The state of Connecticut is negotiating with the current owners of the site on when AVANGRID can gain access to the site and begin work. Work conducted by the LEP will be among the earliest project tasks.
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| PIPE REPLACEMENT: $1.6 million in savings for customers of SCG resulting from accelerating the replacement of cast iron and bare steel pipe over the next three years, without seeking recovery until the next SCG rate case. |
STATUS: Underway |
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STORM RESILIENCY: A commitment to an estimated UI customer benefit of $5 million associated with limited rate recovery for $50 million of distribution storm resiliency investment at UI.
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STATUS: In compliance |
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DISASTER RELIEF: $1 million for disaster relief needs for Connecticut residents.
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STATUS: Pending, payment scheduled to be made when CT Care Foundation established this summer. |
| CUSTOMER SERVICE: Commitments to improve customer service quality. |
STATUS: Underway. UI/SCG/CNG is making enhancements to improve efficiency and productivity, such as a new workforce management system that tracks customer appointments.
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| COMMUNITY SUPPORT: Commitment to maintain charitable giving at $500,000 to $800,000 per year for four years. |
STATUS: Underway, $222,778.78 contributed to nonprofits year-to-date.
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LOCAL CONTROL, JOB PROTECTION: Long-term commitments to maintain corporate headquarters and operations in Connecticut and no layoffs for three years.
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STATUS: In compliance. AVANGRID headquarters maintained in Connecticut. |
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LOCAL PROTECTION: A commitment to “ring fencing” measures to protect financial condition of UI/SCG/CNG from potential changes in the financial conditions of the former Iberdrola USA (now Avangrid Networks) and Iberdrola.
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STATUS: In compliance. On April 29, AVANGRID created a tax neutral Special Purpose Entity (SPE) that is a direct, wholly-owned subsidiary of Avangrid Networks. |
“We felt it was particularly important to inform the public of our progress on these commitments and demonstrate the value that we’ve always believed this transaction would bring to the State of Connecticut,” said James P. Torgerson, AVANGRID’s CEO.
About AVANGRID: AVANGRID, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $40 billion in assets and operations in 24 U.S. states, AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs more than 7,000 people and has been recognized by JUST Capital in 2021 and 2022 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2022, AVANGRID ranked second within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2022 for the fourth consecutive year by the Ethisphere Institute. For more information, visit www.avangrid.com.
About Iberdrola: Iberdrola is one of the world's biggest energy companies and a leader in renewables, spearheading the energy transition to a low carbon economy. The group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola’s main markets include Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others.
With a workforce of nearly 40,000 and assets in excess of €141.7 billion, across the world, Iberdrola helps to support 400,000 jobs across its supply chain, with annual procurement of €12.2 billion. A benchmark in the fight against climate change, Iberdrola has invested more than €130 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles.
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