Eversource to buy Columbia Gas’ Massachusetts assets for $1.1bn

Eversource Energy will acquire the natural gas assets of Columbia Gas in Massachusetts, US, from its parent company NiSource for $1.1bn.

Columbia Gas of Massachusetts provides natural gas to more than 320,000 customers in south-eastern Massachusetts, the greater Springfield area and the Merrimack Valley, all in the US.

Headquartered in Westborough, US, it provides natural gas service to residential and commercial customers in over 60 communities across the Commonwealth of Massachusetts.

Eversource serves 300,000 natural gas customers and 1.5 million electric customers in 51 communities.

Until the close of the transaction, NiSource will continue to drive customer safety and service at Columbia Gas. It will also make ongoing improvements in all areas of operations going forward.

The parties expect the transaction to close by the third quarter of this year, subject to various closing conditions.

NiSource president and CEO Joe Hamrock said: “We believe this transaction will create the right next chapter for the customers and communities that Columbia Gas of Massachusetts serves throughout the state and provide Columbia Gas employees an opportunity to join a strong organization with deep roots in the region.”

Through its Colombia Gas and NIPSCO brands, NiSource serves around 3.5 million natural gas customers and 500,000 electric customers across seven states.

In a separate development, Columbia Gas of Massachusetts has agreed to pay a $53m fine for the 2018 Merrimack Valley gas explosions. The incidents took place in Lawrence, Andover and North Andover in September 2018, killing one individual and injuring 22.

In July 2019, Columbia Gas of Massachusetts and NiSource announced a settlement of all class-action lawsuits based on the incidents. Plaintiffs include several residents and businesses affected by the incident.

The company had dedicated around $1bn in funds have to address those affected.