Before the deal is final, it must go through customary legal steps, including getting approval from federal regulators and notifying Public Utilities Commission of Ohio so it can review it.
CenterPoint said it expects the transaction to close in the fourth quarter of 2026.
The company expects to receive a little more than $1.4 billion in 2026, and the remainder, about $1.2 billion, in 2027. This money will come from a payment agreement made when the deal is finalized.
“Our Ohio natural gas business is a strong and growing enterprise supported by a deeply committed local team focused on safety, excellence in execution, and delivering positive outcomes for customers,” CenterPoint Energy Chair and CEO Jason Wells said in a statement.
He said CenterPoint is confident that National Fuel, which is headquartered in Western New York, will support the continued growth and success of the business “for the benefit of customers, communities and employees.”
CenterPoint Energy is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Indiana, Minnesota, Ohio and Texas. It employs more than 8,000 people.
CenterPoint Energy last year applied to state regulators to allow the charging of higher rates for natural gas service.
CenterPoint acquired Vectren in a $6 billion merger that was completed in February 2019.
In June, CenterPoint announced that the sale of its gas business would have no effect on customers.
“From a day-to-day customer perspective, our Ohio customers should see no impact during the sales process and will continue to receive safe, reliable and affordable natural gas service from CenterPoint, and all aspects of our customer service will remain the same,” the company said then on its website.
Wells said this deal fits into CenterPoint’s updated 10-year investment strategy.
National Fuel’s acquisition of Vectren will “significantly expand” its regulated utility footprint, bringing in approximately 335,000 new customers, more than 200 new employees and approximately 5,900 miles of natural gas infrastructure into its operations, the Western New York company announced Tuesday.
“Gaining a strong presence in a neighboring service territory, with a similar workforce culture, and operations that mirror our existing gas utilities in New York and Pennsylvania is an added benefit for our Company as well as our customers, employees, and shareholders,” National Fuel President and CEO David Bauer said in a release.
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