UGI Sells Pennsylvania Electric Division for $470M with Q1 2027 Closing
UGI Utilities will sell its Pennsylvania Electric Division to Argo Infrastructure Partners for $470 million, with closing expected in Q1 2027 after approvals. The division’s 2,700 miles of transmission and distribution network and 14 substations serving 63,000 customers will transfer to Argo, and proceeds will reduce UGI’s debt.
1. Transaction Terms
UGI Utilities agreed to sell its Electric Division in Pennsylvania to funds managed by Argo Infrastructure Partners for $470 million, including working capital adjustments. The transaction is expected to close in the first quarter of 2027, pending regulatory approvals and standard closing conditions.
2. Electric Division Assets
The Electric Division comprises roughly 2,700 miles of transmission and distribution infrastructure and 14 substations across Luzerne and Wyoming counties, serving more than 63,000 customers. UGI has stated there will be no service interruptions during the ownership transfer.
3. Strategic Impact and Next Steps
UGI intends to use the after-tax proceeds to lower its debt and for general corporate needs, bolstering its balance sheet. Argo will manage the assets under its expanding regulated energy portfolio, marking its 20th investment and fourth Pennsylvania utility acquisition.