Dominion Resources Inc. (“Dominion”) announced Monday, February 1, 2016, that it plans to purchase Utah-based Questar Corporation (“Questar”), a natural gas distributor, for approximately $4.4 billion in an all-cash deal. Purchasing Questar will expand Dominion’s customer base to customers in Western states. With Questar’s acquisition, Dominion would serve approximately 2.5 million electric customers and 2.3 million gas customers in seven states. In addition, Dominion would operate more than 15,000 miles of natural gas transmission, gathering and storage pipelines.
The acquisition is set to close by the end of 2016, pending approval from Questar’s shareholders, the Federal Trade Commission, and, if needed, the Utah Public Service Commission and the Wyoming Public Service Commission. The companies indicated they will also give information about the transaction to the Idaho Public Utilities Commission. After closing, Questar will remain headquartered in Salt Lake City, Utah, operating as a unit of Dominion.
If you have questions about the Dominion acquisition or utilities regulation in Virginia or the mid-Atlantic, please contact one of our energy lawyers.