The utility company hoping to buy the Philadelphia Gas Works said Monday that it will continue its purchase agreement with Philadelphia for the $1.86 billion sale.
Mayor Michael Nutter, eager to advance the sale, has been stymied in his efforts to have a bill on the potential sale introduced in City Council for public consideration. And, because Council members have not enacted an ordinance allowing the sale, UIL Holdings Corporation had the contractual right to terminate the agreement.
“We expressed our disappointment in the City Council’s announcement that it would not endorse the sale, and stated that we would determine whether to exercise our contractual right to terminate the agreement and make a determination on future action within two weeks,” said James P. Torgerson, UIL president and CEO. “The transaction made strategic sense for UIL when we announced the agreement in March of this year, and continues to make strategic sense today.”
UIL will continue to monitor developments in Philadelphia to assess the advisability of further delaying termination of the agreement, according to a company statement.
If the City Council does not adopt an ordinance approving the transaction by Dec. 31, the asset purchase agreement will automatically terminate in accordance with its terms.