Chesapeake Utilities Corp. received regulatory approval from the Maryland Public Service Commission for the pending acquisition of Elkton Gas from South Jersey Industries.
Assuming all closing conditions are satisfied, the transaction is anticipated to close by August 1,at which time Elkton Gas will become the newest wholly-owned subsidiary of Chesapeake Utilities.
Incorporated in 1863, Elkton Gas delivers safe, reliable and affordable natural gas to about 7,000 residential and commercial customers within a franchised area of Cecil County.
Elkton Gas will continue to operate out of its existing office with the same local personnel.
Elkton Gas has also been a long-term customer of Eastern Shore Natural Gas Company, an interstate transmission pipeline company that is also a wholly-owned subsidiary of Chesapeake Utilities.
Chesapeake Utilities currently serves another franchised area of Cecil County, Maryland with natural gas service and has been managing its expansion into this area largely from its Delaware operations. With the addition of the Elkton Gas team and facilities, the entire County can be served locally from the existing office.
“The acquisition of Elkton Gas is a great, strategic fit for our Company and will enable us to more quickly expand our services in Cecil County,” said Jeff Householder, CEO of Chesapeake Utilities Corporation. “We thank the Maryland Public Service Commission for approving this acquisition and we look forward to completing this transaction and welcoming Elkton Gas into the Chesapeake Utilities family. Together, we will remain committed to delivering superior service to the customers and communities we serve through increased, affordable and cleaner energy options.”
In a related move, Chesapeake purchased Boulden propane operations that serve northern Delaware, Cecil County, and other areas. Chesapeake typically offers propane options for customers outside its natural gas system.