Fascinating Look Behind the Curtain of the Phila. Gas Works Deal

Last week MDN told you about the potential sale of the country’s largest municipal-owned natural gas utility–the Philadelphia Gas Works (PGW)–to Connecticut utility company UIL (see Phila. Gas Works Deal for $1.86B – Marcellus/Utica One of Keys). The law firm that structured and brokered the deal says that while the legal aspects were complicated, the legal aspects were the “easy” part. The hard part? The coming political buzz saw from selling the city-owned asset (an asset that’s been losing money for forever under city ownership). Labor unions are actively opposing the sale, afraid it will mean layoffs.

Why buy a money loser? According to the lawyer in charge of the deal, Gregory L. Seltzer, UIL wanted to buy PGW for three reasons…

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