The Philadelphia City Council opposed the $1.86 billion sale of the city's gas company, Philadelphia Gas Works (PGW), to Connecticut-based energy company UIL Holdings Corp.The city council informed Philadelphia Mayor Michael Nutter on Monday that "the financial and public policy risks associated with the sale proposal outweighed the stated benefits to the City of Philadelphia and PGW customers."Among the concerns cited by the council were loss of annual city revenue payments and uncertainty about future rate increases, employee retention and wages and how quickly the cast iron gas mains would be replaced."The City Council submitted to Mayor Nutter recommendations for PGW moving forward, and will hold public hearings on how Philadelphia can leverage its considerable assets, including PGW, toward a future as a regional energy hub," Council President Darrell Clarke said in the statement.
UIL Holdings Corporation is engaged in the ownership of its operating regulated utility businesses. Shares of UIL traded higher by 3.33% or $1.32/share to $40.93. In the past year, the shares have traded as low as $34.34 and as high as $40.68. On average, 338329 shares of UIL exchange hands on a given day and today's volume is recorded at 599660.
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