Eversource to acquire Columbia Gas assets in Mass. for $1.1 billion

BOSTON — Eversource Energy had announced they reached an agreement to buy Columbia Gas’ assets in Massachusetts for $1.1. billion from NiSource, Columbia Gas’ current parent company.

Columbia Gas operations in Massachusetts will now fall under local ownership of the largest energy company in New England.

Currently serving 330,000 natural gas customers in more than 60 communities in Massachusetts, Columbia Gas was found at fault for the explosions and subsequent fires that devastated the Merrimack Valley in 2018.

Eversource currently services 300,000 natural gas customers and 1.5 million electric customers in 51 communities across the state. Many communities that Columbia Gas serves with natural gas already receive electric service from Eversource.

“Eversource is uniquely positioned to leverage the strengths of our current and future workforce, facilities, gas supply resources and business processes to achieve greater operational efficiency, while continuing to deliver on our unwavering commitment to safety and superior service for our customers,” said Eversource Chairman, President and CEO Jim Judge. “As the #1 rated energy company in the U.S. by Newsweek and the #1 ranked utility according to Forbes and JUST Capital for corporate social responsibility, we are focused on providing safe and reliable service to our customers while at the same time nurturing a diverse and engaged workplace for employees and working to protect the environment. We look forward to bringing that commitment to all of our new customers and employees.”

Under the agreement between both companies, NiSource will continue to be responsible for any and all liabilities related to the 2018 gas explosions and fires.

Eversource also recently announced a plan to become carbon neutral by 2030, are now saying they will extend the same carbon reduction initiatives in the extended service territory of Columbia Gas.

“We have a strong track record of investing in infrastructure to significantly improve the reliability and safety of our systems,” said Eversource Gas President Bill Akley. “Our commitment to operational excellence and superior customer service will create value for customers, employees, shareholders, and the communities we serve. We look forward to working with Columbia Gas to achieve the transaction and ensure a safe and smooth transition of services for customers in Massachusetts."

The Massachusetts Department of Public Utilities and the U.S. Justice Department will still need to approve the transaction, which is expected to be closed by the end of the third quarter of 2020.

With many Massachusetts residents using Columbia Gas for their utilities, what will the acquiring mean for their bills? One expert says it’s very possible that they go up.

“There’s going to be a tremendous cost, both to the buyer to fix the issues and, terribly, there’s going to be a tremendous cost to the consumer in his or her monthly utility bill too,” said Burt Flickinger, the director for Strategic Research Group.

Flickinger’s team has studied power prices in Massachusetts and worries, with the new merger, that the cost of the transition could trickle down to customers.

However, Eversource says that may not be the case. In a statement released by the company, Eversource listed several benefits to its acquisition of Columbia Gas, including, “improved safety and reliability, the advantage of locally based gas dispatch, [and its] strong financial profile that helps to lower financing costs for customers.”

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