Essential Utilities Completes Sale of Allegheny County Microgrid and District Energy Projects to Cordia
30 Janeiro 2024 - 9:00PM
Business Wire
Essential and subsidiary Peoples to focus on
core mission as regulated utility, continue supporting local
innovations that provide region with safe, reliable, sustainable
energy
Essential Utilities, Inc. (NYSE: WTRG) today closed the sale of
its three non-utility microgrid and district energy properties in
Allegheny County to Cordia, a sustainability-driven energy
solutions provider. The agreement is valued at $165 million.
The agreement covers innovative microgrids and district energy
systems developed by Peoples, Essential’s gas operations subsidiary
based in Pittsburgh, where the assets are located.
- The Pittsburgh International Airport microgrid is the
first of its kind, allowing the airport to operate independent of
the electric grid thanks to a 21.25 MW natural gas power plant
supported by on-site gas production, making PIT one of the most
resilient airports in the world.
- The district energy system at Allegheny Health Network (AHN)
– Wexford Hospital provides the 160-bed hospital with all
heating, cooling and primary power needs via steam boilers, hot
water boilers, chillers, and a 2.0 MW natural gas generator, along
with emergency backup power.
- The Allegheny County District Energy system
provides efficient and resilient steam and hot water services to
six government buildings including the Allegheny County Courthouse
and City-County Building, using seven state-of-the-art steam
boilers and one domestic water heater.
Essential selected Cordia as the buyer for the three systems in
part because of their expertise in microgrids and district energy
systems, along with their established footprint in Pittsburgh.
Cordia currently operates energy systems in Pittsburgh’s Uptown and
North Shore neighborhoods, as well as the on-campus energy system
for Duquesne University. The company’s presence in the region dates
back to the 1960s.
“These microgrid projects demonstrated the ability of natural
gas to meet all the energy needs of major institutions, like the
groundbreaking microgrid at Pittsburgh International Airport,” said
Essential Utilities CEO Chris Franklin. “I’m incredibly proud of
the work by our Peoples team in developing this project. By
transitioning these assets to Cordia, an energy solutions leader
with a strong presence in the region, our teams will focus more
fully on our core business as a regulated utility, while continuing
to support projects that provide resilient, sustainable
energy.”
“I want to extend my gratitude to Essential Utilities and
Peoples for their role in developing these state-of-the-art energy
systems,” said Cordia CEO Earl Collins. “Cordia remains committed
to providing safer, more reliable, and more resilient energy to our
community. We are enthusiastic about the positive impact these
systems will have on the region and are confident in our ability to
continue delivering exceptional energy solutions for years to
come."
The sale of these unregulated assets demonstrate Essential’s
efforts to strategically focus on its core businesses. The company
will continue to prioritize investments in infrastructure to
improve safety and reliability, and to reduce emissions.
TD Securities (USA) LLC acted as financial advisor to Essential,
while Gibson, Dunn & Crutcher LLP acted as legal advisor.
Use of Proceeds Essential will use the $165 million
in transaction proceeds to finance its capital expenditures and
water and wastewater acquisitions, in place of external funding
from equity and debt issuances.
About Essential Essential Utilities, Inc.
(NYSE:WTRG) delivers safe, clean, reliable services that improve
quality of life for individuals, families, and entire communities.
With a focus on water, wastewater and natural gas, Essential is
committed to sustainable growth, operational excellence, a superior
customer experience, and premier employer status. We are advocates
for the communities we serve and are dedicated stewards of natural
lands, protecting more than 7,600 acres of forests and other
habitats throughout our footprint.
Operating as the Aqua and Peoples brands, Essential serves
approximately 5.5 million people across 9 states. Essential is one
of the most significant publicly traded water, wastewater service
and natural gas providers in the U.S. Learn more at
www.essential.co.
About Peoples Peoples provides clean, safe,
affordable and reliable natural gas service to approximately
740,000 homes and businesses in Western Pennsylvania and Kentucky.
Peoples is committed to its customers, its employees, the
environment, and to the regions it serves.
About Cordia Cordia is a leading provider of safe,
reliable, and sustainable energy solutions. Headquartered in
Phoenix, AZ, Cordia serves over 700 customers with heating,
cooling, and electricity throughout the U.S. Cordia is committed to
driving change toward a more resilient, sustainable energy future
and empowering people and communities to reach their full
potential. Learn more at www.cordiaenergy.com.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, among others: the company’s ability to successfully
close the transaction. There are important factors that could cause
actual results to differ materially from those expressed or implied
by such forward-looking statements including: the receipt of
governmental approvals and other closing conditions; the successful
closing of the acquisition; and other factors discussed in our
Annual Report on Form 10-K, which is on file with the Securities
and Exchange Commission. For more information regarding risks and
uncertainties associated with Essential Utilities business, please
refer to Essential Utilities annual, quarterly and other SEC
filings. Essential Utilities is not under any obligation — and
expressly disclaims any such obligation — to update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise.
WTRGF
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version on businesswire.com: https://www.businesswire.com/news/home/20240116319850/en/
Essential/Peoples Media Contact: Nick Paradise External
Communications Manager Media Hotline: 1.877.325.3477
Media@Essential.co
Investor Contact: Brian Dingerdissen Vice President, IR
and Treasurer O: 610.645.1191 BJDingerdissen@Essential.co
Cordia Media Contact: Jenny Disbrow External
Communications Manager 480.209.9727
Jenny.Disbrow@CordiaEnergy.com
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