New York utility regulators have given the global energy company Iberdrola the permission to buy Energy East. The New York Public Service Commission voted 4-0 for the acquisition, but imposed several conditions to address concerns raised by its staff.
The commission’s staff had recommended against the acquisitions, citing concerns about creating a too-powerful utility and protecting consumers’ interest. The staff also recommended forcing Iberdrola to sell its wind farm and hydropower plants because of a state policy that prohibits companies from owning power-generating plants and transmission lines. As conditions for the approval, the commission’s staff directed Iberdrola, a wind energy giant based in Spain, to set aside $275 million to offset future rate increase.
If it accepts the deal, Iberdrola will have to invest $200 million in renewable-energy projects in the state and sell off Energy East’s fossil-fuel power plants. Iberdrola will not be allowed to invest in wind energy using funds from an Energy East subsidiary.
Iberdrola has not yet accepted the conditions, which the New York PSC calls a “good deal.” Iberdrola had no immediate comment except to say that it looks forward to reviewing the order to determine what steps it will take next.
In recent years, Iberdrola has aggressively expanded into the United States. In May, the company said it would invest $8 billion in renewable energy in the United States from 2008 to 2010, doubling its wind-energy capacity.
Source: http://www.forbes.com/feeds/ap/2008/09/04/ap5388186.html Date: 04-09-08
The commission’s staff had recommended against the acquisitions, citing concerns about creating a too-powerful utility and protecting consumers’ interest. The staff also recommended forcing Iberdrola to sell its wind farm and hydropower plants because of a state policy that prohibits companies from owning power-generating plants and transmission lines. As conditions for the approval, the commission’s staff directed Iberdrola, a wind energy giant based in Spain, to set aside $275 million to offset future rate increase.
If it accepts the deal, Iberdrola will have to invest $200 million in renewable-energy projects in the state and sell off Energy East’s fossil-fuel power plants. Iberdrola will not be allowed to invest in wind energy using funds from an Energy East subsidiary.
Iberdrola has not yet accepted the conditions, which the New York PSC calls a “good deal.” Iberdrola had no immediate comment except to say that it looks forward to reviewing the order to determine what steps it will take next.
In recent years, Iberdrola has aggressively expanded into the United States. In May, the company said it would invest $8 billion in renewable energy in the United States from 2008 to 2010, doubling its wind-energy capacity.
Source: http://www.forbes.com/feeds/ap/2008/09/04/ap5388186.html Date: 04-09-08
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