(July 27, 2007) — Sen. Charles Schumer won't support Iberdrola's proposed takeover of Energy East until the Spanish utility company puts a few promises in writing.
"This merger requires the sign-off from both federal and state regulators. ... I want more specifics from Iberdrola to ensure that monthly utility bills will remain low and service quality remains high for Rochester-area residents," Schumer said Thursday.
Low-cost energy, redevelopment of the Russell Station and job retention are other issues of concern to New York's senior Democratic senator.
"We're putting them on notice we're not going to let what happened with National Grid happen here," said Schumer, who met Thursday with Jose Ignacio Sanchez Galán, Iberdrola's chairman and chief executive, and Wes von Schack, chairman and CEO of Energy East Corp.
Under National Grid, a Great Britain utility company that took over Niagara Mohawk four years ago, central New York and Capital Region customers frequently have experienced "soaring" energy rates, power outages and blackouts, according to Schumer.
Though Iberdrola is in a different class, with an A-credit rating for reliability, Schumer said he doesn't want to see New Yorkers go through another "shoddy" foreign takeover.
The Spanish utility giant is offering $4.5 billion cash for Energy East, which is Rochester Gas and Electric's parent company.
Iberdrola serves 24 million customers in eight different markets. Energy East would be its only U.S. presence.
DJWALLAC@DemocratandChronicle.com
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