In an effort to make a strategic shift towards being a United States focused energy company, PPL has announced a deal to sell its U.K. Utility Business to National Grid and buy National Grid’s Rhode Island Utility.
The sale of Western Power Distribution, the U.K. business, will generate net cash proceeds of $10.2 billion for PPL. Its purchase of The Narragansett Electric Company for $3.8 billion in cash will help increase the company’s U.S. presence.
The pair of transactions will strengthen PPL’s credit profile by adding roughly $6.4 billion in cash to the company’s balance sheet. This cash will be used for incremental capital investment or share repurchases.
In a statement, Vincent Sorgi, PPL president and CEO, said “We're eager to play a key role in advancing Rhode Island's decarbonization goals. We believe our experience in automating electricity networks can help the state achieve its target of 100% renewable energy by 2030. And we look forward to being a strong community partner in Rhode Island, something that has been a hallmark of PPL for more than a century."