Friday, December 07, 2007

Federal regulators approve Energy East merger

The Federal Energy Regulatory Commission (FERC) approved Thursday afternoon the merger between Energy East Corporation and Spanish utility company Iberdrola, S.A.

According to FERC spokeswoman Barbara Connors, the government regulating agency assessed the acquisition for its consistency with public interest, effects on competition, rates and regulation, and the potential for cross-subsidization of a non-utility associate company.

Because Iberdrola’s operational facilities are independent of New York and New England, where Energy East also has electric utility operations, FERC officials determined that the merger would not “harm competition”

In terms of its effects on wholesale rate customers, the government agency said in a statement that “nothing in the application indicates that rates to customers will increase as a result of the transaction.”

A spokesman for Energy East could not immediately be reached for comment.

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