NiSource To Sell Columbia Gas To Eversource For $1.1 Billion Cash

ANDOVER, MA — NiSource, Inc. is poised to sell Columbia Gas of Massachusetts to Eversource, the company announced. NiSource is required to sell the company and leave the state as part of a federal plea deal related to the Sept. 2018 Merrimack Valley gas explosions. Eversource, New England's largest energy utility, has agreed to buy the NiSource subsidiary for $1.1 billion in cash.

Federal officials announced Wednesday that Columbia Gas would be pleading guilty to violating the Pipeline Safety Act. Subject to judicial approval, NiSource is required to pay a $53 million fine, sell its Massachusetts assets and leave the state. Any profits from the sale would also go to the government, but according to the NiSource news release, the $1.1 billion purchase price represents a loss.

The Sept. 13, 2018 accident killed one, injured 22, and damaged 131 structures in Andover, Lawrence and North Andover, as well as leaving many residents unable to return to their homes for months. The National Transportation Safety Board's final report on the accident, released in October, found that "weak engineering management" by Columbia Gas was responsible for the deadly explosions. The company also faces investigations at the state level.

The sale to Eversource is expected to close in the third quarter of 2020, NiSource said in a news release Wednesday evening. Eversource will not take on any criminal or civil liabilities related to the 2018 explosions.

"We believe this transaction will create the right next chapter for the customers and communities that Columbia Gas of Massachusetts serves throughout the state, and provide Columbia Gas employees an opportunity to join a strong organization with deep roots in the region," said NiSource CEO Joe Hamrock in a statement. "Eversource is one of the most respected energy companies in the country with a strong operational track record in the New England area, and we believe they are focused on investing in Columbia Gas of Massachusetts to further improve system operations, including to enhance safety, pipeline integrity and reliability programs. We look forward to working closely with Eversource to ensure a smooth transition.

The sale will have to be approved by the Massachusetts Department of Public Utilities, which has overseen Columbia Gas operations since the explosions, including imposing a moratorium on non-emergency work in October.

Officials including Governor Charlie Baker and U.S. Rep. Lori Trahan, who represents Lawrence and part of Andover, praised the sale Thursday.

Christopher Huffaker can be reached at 412-265-8353 or chris.huffaker@patch.com.