June 18, 2008
Iberdrola rethinks Energy East bid
Spanish utilities company Iberdrola SA yesterday said it would rethink its proposed $4.6 billion deal to buy New Gloucester-based Energy East after a New York judge recommended the deal be rejected.
A state administrative law judge in New York on Monday said Iberdrola SA's bid to acquire Energy East, which owns Central Maine Power, as well as Rochester Gas & Electric Corp. and New York State Electric & Gas Corp., is not in the public's interest, according to The Post-Standard in Syracuse, N.Y. The judge's recommendation is not binding and the decision is in the hands of the New York Public Service Commission, whose staff also recommended rejecting the deal because of questions about how the deal would affect the public. The judge said the deal should only be approved if Iberdrola sells all its power generation units in New York and cuts rates for consumers, according to the paper.
There is no date set for the commission to make a decision. The commission's approval is the only hurdle left for Iberdrola. In late January, Maine's Public Utilities Commission approved the deal, as have other federal and state regulators.
A state administrative law judge in New York on Monday said Iberdrola SA's bid to acquire Energy East, which owns Central Maine Power, as well as Rochester Gas & Electric Corp. and New York State Electric & Gas Corp., is not in the public's interest, according to The Post-Standard in Syracuse, N.Y. The judge's recommendation is not binding and the decision is in the hands of the New York Public Service Commission, whose staff also recommended rejecting the deal because of questions about how the deal would affect the public. The judge said the deal should only be approved if Iberdrola sells all its power generation units in New York and cuts rates for consumers, according to the paper.
There is no date set for the commission to make a decision. The commission's approval is the only hurdle left for Iberdrola. In late January, Maine's Public Utilities Commission approved the deal, as have other federal and state regulators.
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