LDC Sale

The Kentucky Public Service Commission has approved the purchase of Delta Natural Gas Company by PNG Companies LLC.

Delta is headquartered in Winchester, Kentucky, and serves about 39,000 customers in 23 counties in eastern and central Kentucky. It is the smallest of Kentucky's five major natural gas local distribution companies (LDCs).

The acquiring company is substantially larger. It is based in Pittsburgh, Pennsylvania, and distributes natural gas to about 700,000 customers through its systems in Pennsylvania, West Virginia, and Kentucky.

Delta and PNG stated that the acquisition should lead to improvements in service by affording Delta access to technology already in use at PNG. PNG said as well that it would seek out opportunities to expand LDC services within Delta's current territory and work with currently unserved communities seeking to have natural gas made available to them.

The commission found that as a much larger company, PNG's proven ability to attract investment capital should benefit Delta and its customers. (Case No. 2017-00125)