Background and Nature of Operations |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Background and Nature of Operations | Note 1. Background and Nature of Operations AVANGRID, Inc., formerly Iberdrola USA, Inc. (AVANGRID, We or the Company), is an energy services holding company engaged through its principal subsidiaries AVANGRID Networks, Inc. (Networks), UIL Holdings Corporation (UIL) and AVANGRID Renewables Holding, Inc. (ARHI) in the regulated energy distribution, renewable energy generation (Renewables) and gas businesses (Gas), collectively (Renewables and Gas). AVANGRID is an 81.5% owned subsidiary of Iberdrola, S.A. (Iberdrola), a corporation organized under the laws of the Kingdom of Spain. The remaining outstanding shares are publicly traded on the New York Stock Exchange and owned by various shareholders. AVANGRID was organized in 1997 as Energy East Corporation under the laws of New York as the holding company for the principal operating utility companies. Reorganization On November 20, 2013, we completed a series of reorganizations (Reorganization) of entities under common control. The Reorganization included the transfer of ARHI from an affiliate of Iberdrola to AVANGRID, and the transfer of the principal operating utility companies from AVANGRID to Networks. AVANGRID and ARHI were acquired by Iberdrola in 2008 and 2007, respectively, and they have been under common control of Iberdrola for all periods presented. Networks was formed as part of the Reorganization in November 2013. Networks is a public utility sub-holding company operating under the Public Utility Holding Company Act of 2005 with operations in New York and Maine. The wholly owned subsidiaries and the operating utility companies of Networks include: CMP Group - Central Maine Power Company (CMP), RGS - New York State Electric & Gas Corporation (NYSEG), Rochester Gas & Electric Corporation (RGE) and Maine Natural Gas Company (MNG). ARHI is the sub-holding company of the unregulated energy business that includes the renewable energy and the gas trading and storage businesses. The transfer of a business among entities under common control is accounted for at carrying amount with retrospective adjustment of prior period financial statements similar to the manner in which a pooling-of-interest was accounted for under accounting principles generally accepted in the United States of America (U.S.GAAP). Acquisition of UIL On December 16, 2015 (acquisition date), UIL Holdings Corporation, a Connecticut corporation (UIL), became a wholly-owned subsidiary of AVANGRID as a result of the merger of Green Merger Sub, Inc., a Connecticut corporation and a wholly-owned subsidiary of AVANGRID (Merger Sub), with UIL, with Merger Sub surviving as a wholly-owned subsidiary of AVANGRID (the acquisition). The acquisition was effected pursuant to the Agreement and Plan of Merger, dated as of February 25, 2015, by and among AVANGRID, Merger Sub, and UIL. Following the completion of the acquisition, Merger Sub was renamed “UIL Holdings Corporation.” In connection with the acquisition, we issued 309,490,839 shares of common stock of AVANGRID, out of which 252,234,989 shares were issued to Iberdrola through a stock dividend, accounted for as a stock split, with no change to par value, at par value of $0.01 per share and 57,255,850 shares (including those held in trust as Treasury Stock) were issued to UIL shareowners in addition to payment of $10.50 in cash per each share of the common stock of UIL issued and outstanding at the acquisition date. Following the completion of the acquisition, former UIL shareowners owned 18.5% of the outstanding shares of common stock of AVANGRID and Iberdrola owned the remaining shares. See Note 4 – Acquisition of UIL – for further details. The regulated utility businesses of UIL consist of the electric distribution and transmission operations of The United Illuminating Company (UI) and the natural gas transportation, distribution and sales operations of The Southern Connecticut Gas Company (SCG), Connecticut Natural Gas Corporation (CNG) and The Berkshire Gas Company. UI is also a party to a joint venture with certain affiliates of NRG Energy, Inc. (NRG affiliates) pursuant to which UI holds 50% of the membership interests in GCE Holding LLC, whose wholly owned subsidiary, GenConn Energy LLC (collectively with GCE Holding LLC, GenConn) operates peaking generation plants in Devon, Connecticut (GenConn Devon) and Middletown, Connecticut (GenConn Middletown). |