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Tuesday, February 20, 2024

Dominion selling PSNC Energy for $3.1 billion

Richmond-based Dominion Energy is selling its North Carolina natural gas distributor to Enbridge for $3.1 billion as part of a package deal to focus on its electricity business.

Public Service Co. of North Carolina is being sold along with East Ohio Gas Co., Questar Gas Co. and Wexpro Co. for $14 billion.

Public Service Company of North Carolina, also known as PSNC Energy, serves more than 600,000 customers across 28 counties in North Carolina. It serves the cities of Raleigh, Durham and Asheville and has about 13,000 miles of transmission, gathering and distribution pipelines.

The North Carolina business, based in Gastonia, is fetching a price of $2.2 billion plus the assumption of nearly $1 billion in debt. Dominion Energy expects after-tax proceeds of $1.8 billion.

“Dominion Energy’s best-in-class gas utilities and our incredible employees set the standard for industry reliability, environmental and safety performance, customer service, and community engagement,” says Dominion CEO Robert Blue in a statement. “These businesses and employees have been an integral part of the Dominion Energy team which is why we approached this decision with careful and deliberate consideration.”

Dominion says that Enbridge has agreed to honor existing union commitments and maintain local operating leadership.

Dominion obtained PSNC in 2019 as part of its $14 billion acquisition of SCANA Corp. SCANA bought PSNC Energy in 2000 for $673 million.

The deal is expected to close in 2024.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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