The corporate parent of The United Illuminating Co. announced this morning that it is acquiring Connecticut's two largest natural gas utilities and a sister company from Massachusetts in a deal that amounts to $885 million.

UIL Holdings is actually paying the US affiliate of Spanish Energy giant Iberdrola almost $1.30 billion for Southern Connecticut Gas, Connecticut Natural Gas and Berkshire Gas. But as part of the terms of the deal, the final sale price will be $885 million because of $411 million in debt associated with the three Iberdrola companies.

The deal is expected to close in the first quarter of 2011. More details to come throughout the day.