CT natural gas utility eyes $165M debt issuance to fund capital expenses
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Avangrid
Southern Connecticut Gas Company (SCG) has filed an application with the Public Utilities Regulatory Authority (PURA) to issue up to $165 million in long-term debt to fund capital expenses and repay short-term loans.
The company, a subsidiary of Orange-based utility operator Avangrid, filed the application with PURA on May 6, requesting approval from the regulator “as soon as practicable.”
The debt issuance would cover costs associated with the construction and acquisition of “additions, extensions, betterments and improvements to its plant and property,” according to SCG’s application.
The proposed debt issuance, which would run through Dec. 31, 2027, would allow the company to “furnish adequate and reliable service to its customers,” the application states.
SCG provides natural gas to about 210,000 customers in a service territory that extends 555 square miles.
The debt would be issued in multiple series, in the form of bank market loans or bonds, which would be secured by a first mortgage lien.
The financing structure, amount and interest rate of each issuance would be determined at the time of marketing and pricing.
SCG said it does not expect the debt issuance to affect its credit metrics or ratings.
SCG’s equity ratio was 55.8% as of Dec. 31, 2024. After the proposed debt issuance, the company’s equity ratio is projected to be 52.7%.
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