December 28, 2017

Avangrid plans sale of its gas storage businesses


Orange-based utility parent Avangrid Inc. said Thursday it will sell its Enstor gas storage businesses, including the trading business, now that it has completed a thorough review.

The utility, which assumed its name when global Spanish utility Iberdrola acquired UIL Holdings in 2015, noted that the full financial impacts and any necessary accounting adjustments are subject to change, and will be updated and communicated at the time of its fourth quarter earnings report some time in February.

In addition, as a result of the enactment of tax reform legislation signed into law on Dec. 22, Avangrid expects to recognize a one-time gain related to the re-measurement of deferred taxes, primarily its renewables business. The tax reform act results in a lower federal corporate tax rate of 21 percent, which the utility said it expects will benefit its non-regulated businesses.

"We believe that our scale, experience and successful track record of delivering high quality renewables projects will enable us to continue to access this market as it adapts and develops," the utility said.

The tax credits supporting renewables remain in place and are unchanged from the phase-down previously established in 2015, the utility added.

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