Bryn Mawr-based Essential Utilities recently agreed to sell its West Virginia natural gas utility to West Virginia-based Hope Gas.
The utility, Peoples West Virginia, is among the smallest in the states where Essential operates, with a customer base of approximately 13,000. It has made investments and operational improvements over the past 2.5 years.
“The ability to apply economies of scale is crucial for the long-term stability of utilities. The sale of Peoples WV to Hope Gas will provide greater economies of scale in West Virginia and allow continued rate stability for our customers,” Chris Franklin, Essential Utilities chairman and CEO, said. “We will work diligently with the Hope Gas management team to close the transaction and fully expect a seamless transition,”
The sale allows Essential Utilities to focus on the growth of its other utilities. It is also part of the company’s long-term infrastructure investment and growth strategy by acquiring water and wastewater systems.
The sale of Peoples West Virginia specifically will allow the Essential team to prioritize the growth of Aqua, its water and wastewater business, and focus on the efficient, safe operation and emission reduction of Peoples Natural Gas.
The Public Service Commission of West Virginia must still approve the sale.