Iberdrola sweetens utility deal with $2B wind plan

ALBANY, N.Y. – A company based in Spain said Tuesday that it hopes to invest $2 billion in wind energy in New York over the next five years if regulators approve its purchase of Energy East Corp., which serves four Northeastern states.

The global energy company Iberdrola SA needs approval from New York’s Public Service Commission to buy Energy East for $4.6 billion. The deal would affect 3 million customers from upstate New York to Maine and would put Rochester Electric and Gas Corp. and New York State Electric & Gas Corp. under foreign ownership.

The company has received regulatory approvals from the other states and the federal government for their proposal, which includes a Rochester headquarters for the Northeast operation. New York’s Department of Environmental Conservation and economic development offices have also endorsed the proposal.

Energy East owns utilities in New York, Connecticut, Massachusetts and Maine.

There was no opposition to the deal in Maine, where 80 percent of electric customers are served by Energy East’s Central Maine Power subsidiary.

“Iberdrola has helped many countries meet their renewable energy goals and benefit from our high-tech investments and ‘green collar’ jobs that result from this kind of investment,” said Iberdrola’s Xabier Viteri.

Although New York officials support significant expansion into renewable energy to reduce costs and create jobs, the deal is questioned by state PSC staff regulators who are concerned about whether it will best serve the public in cost and competitiveness.

The PSC staff has questioned whether the deal adequately shields New York customers from paying for Iberdrola’s other business ventures. And they are concerned that the Spanish company’s financial records might not be fully available to state regulators, making it difficult to enforce measures to ensure the system is reliable and responsive to customers.