Next month, the Maryland Public Service Commission will vote on whether to allow a Canadian energy company to buy Washington Gas and Light, a public utility that has provided electricity and natural gas to customers in the District of Columbia and Maryland suburbs for more than a century.
The proposed merger of AltaGas and Washington Gas is part of a trend across the country. Increasing numbers of locally-owned and controlled public utilities are being bought up by large corporate conglomerates based in distant headquarters, according to Paul Patterson, a utility industry analyst at Glenrock Associates in New York.
“What you are seeing generally speaking in the utility sector is a considerable amount of consolidation for several years now,” Patterson said. “So, in the Washington DC area, for instance, you saw PEPCO – which is a familiar name on the electric side – that was bought recently by Exelon, which owns Baltimore Gas and Electric and some other utilities in Philadelphia and Chicago.”
As part of the discussions over Maryland’s approval of the proposed $4.5 billion AltaGas/Washington Gas merger deal, Governor Larry Hogan’s administration negotiated for the Canadian company to pay $103 million to kick start a natural gas pipeline expansion project in rural areas throughout Maryland, according to the Maryland Energy Administration.