Report: UIL Has Spent $20 Million in Effort to Buy PGW

Company remains committed to deal despite delays.

Photo | Jeff Fusco

Photo | Jeff Fusco

The Hartford Courant reports that UIL Holdings, the Connecticut company attempting to buy and privatize Philadelphia Gas Works, has spent nearly $20 million on the effort so far — and remains committed to pursuing the deal, despite passing a deadline that would’ve allowed the company to walk away.

So far, the deal has cost UIL $5.6 million in “legal, investment banking, and due diligence costs,” the company said in regulatory filings, as well as $14.3 million in loan fees.

The company expects the sale to close in the first quarter of next year.

[CEO James] Torgerson, announcing the company’s second quarter earnings Wednesday, said he expects city council to take up the deal when it reconvenes in September and has received its independent report on the sale. “We remain ready to assist the City Council in its assessment of the sale of PGW, including the essential public dialogue of what we believe is a valuable economic opportunity for Philadelphia,” he said.

Factoring out Philly expenses, the Courant reported, UIL Holdings made $14.3 million during the quarter.

Previously: UIL Explains Why It Wants to Purchase Philadelphia Gas Works — and What it Intends to Do With It
Previously: UIL: Despite Crucial Deadline Passing, We Still Want to Buy PGW
Previously: PGW Archives