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Black Hills, Aquila transaction granted one more state approval
By Lisa Kerner
Charlotte, N.C., Feb. 15 - The Colorado Public Utilities Commission approved the proposed acquisition of Aquila, Inc.'s natural gas and electric utility assets by Black Hills Corp.
In Colorado, Aquila's electric utility serves some 92,000 customers in 21 communities and the natural gas utility serves about 64,000 customers in 27 communities, a company news release stated.
Black Hills and Aquila have obtained state regulatory approvals in Iowa and Nebraska, in addition to Colorado, according the release.
Regulatory approvals are still needed in Kansas and Missouri.
The Kansas Corporation Commission held a hearing on Black Hills' purchase of Aquila's Kansas gas utility properties on Feb. 12. A final decision is forthcoming.
As previously reported, Black Hills and Great Plains Energy, Inc. will each acquire portions of Aquila in separate transactions.
On Jan. 31, Great Plains, Black Hills and Aquila mutually extended the termination dates for their acquisition and asset sale transactions to May 1 from Feb. 6.
Great Plains will acquire all the outstanding shares of Aquila and its Missouri-based electric utility assets for $1.80 in cash plus 0.0856 of a share of Great Plains common stock for each share of Aquila common stock. The transaction, valued at $4.54 per share, or about $1.7 billion, includes the assumption of some $1 billion of Aquila's net debt.
Black Hills will acquire Aquila's electric utility in Colorado, its gas utilities in Colorado, Kansas, Nebraska and Iowa and its associated liabilities for $940 million in cash immediately prior to Great Plains' acquisition of Aquila.
Based in Kansas City, Mo., Aquila owns electric power generation assets and operates electric and natural gas transmission and distribution networks.
Great Plains is a Kansas City, Mo., holding company for Kansas City Power & Light and Strategic Energy, LLC.
Black Hills is a diversified energy company based in Rapid City, S.D.
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