February 21, 2008
Rafael A. Epstein
Public Statement Hearing
Public Service Commission
3 Empire State Plaza
Albany, New York 12223-1350
RE: IBERDROLA, S.A. acquisition of Energy East
The Honorable Judge Epstein,
Cohocton Wind Watch is a community based citizen organization that currently has three active Article 78 actions in NYS Supreme Court, regarding the UPC Wind Projects in Cohocton, NY. CWW strongly opposes the approval of the IBERDROLA, S.A. acquisition of Energy East.
1) Recently reported by CNBC: “Iberdrola SA has been fined 15.4 mln eur by the Comision Nacional de la Competencia (CNC) for abusing its dominant position in the electricity generation market, the antitrust body said.”
2) The following summary report provides documentation on the Acciona IBERDROLA worldwide wind power monopolization
3) Joint bid pondered for Spain's Iberdrola, reports: “French electricity generator EDF and Spanish construction giant ACS are considering a joint bid for Iberdrola”
4) German utility giant E.ON turns bidding sights on Iberdrola, reports: “The German group, the world's largest utility by sales and the owner of UK energy supplier Powergen, is taking a keen interest in a mooted joint €50.5 billion (£37.6 billion) bid for Iberdrola by its French rival EDF alongside ACS, Spain's largest construction firm, according to industry sources.”
5) In the article, Iberdrola prepares to defend against takeover, it is quoted that: “Iberdrola intends to show investors it can deliver the 11-percent annual earnings and dividend growth promised in October.”
The point of all these reports is that Ibredrola has a history of ant-trust violations, is a central part of a wind development monopoly, is in play for a hostile take over from two separate European groups and has a stated announced policy to deliver an 11% annual earning for investors.
Why is the PSC considering a suspect monopolist foreign company taking control of an essential Northeast utility company?
The Public Service Commission has a prime duty to protect the PUBLIC. Approving a financial scheme to maximize return on capital is not the mission of the PSC. Since electric de-regulation has become the law, the clear and distinct separation between energy generation and distribution has been the norm.
IBERDROLA, S.A. has floated a major European stock offer to create a subsidy to acquire renewable energy acquisitions at the same time when their own company is a target of a hostile takeover. How can the PSC be true to their stated purpose and approve such an ill-conceived purchase of Energy East?
The fact that Iberdrola is part owner of Maple Ridge/Tug Hill wind project and has proposed developments in Hamlin and in other towns in Central NY, illustrates that Iberdrola has every intention to violate the separation of generation - distribution mandate. Homeland security would be severely compromised with an approval of foreign control over an essential infrastructure supplier.
It is a proven fact that wind electric generation is not sustainable at most of the sites presently under consideration for major industrial wind turbine projects. Wind produced electric is substantially more expensive then other methods of generation. The mantra that alternative energy goals must be met for NYS by the siting of wind projects avoids the central issue that sufficient wind patterns do not exist to produce reliable wind electricity throughout the state.
Iberdrola seeks to force this kind of marginal technology, at best, upon every hamlet and hillside in a reprehensible attempt to produce a superior stock holder return on equity. How does the NY consumer benefit from such a plot to defraud the ratepayer? The threats of eminent domain have been heard at every corner of our state. Scores of local groups have been formed to combat this systematic effort to steal the effective use of our land for the enrichment of foreign companies.
The employees of Energy East know all too well what is coming if Iberdrola is approved by the PSC. Many workers have already been notified that their days are numbered. They are utility customers too, and when they are out of work, how will they be able to afford the higher cost of electric and gas being charged because investment bankers need to service excessive debt to finance another corporate raid?
Iberdrola should be denied approval of acquisition of Energy East based upon their anti-trust business practices. Currently law enforcement authorities are investigating numerous utility companies, elected officials and state agencies. The conduct of the Public Service Commission is one of those agencies. Under these circumstances it would be immoral for the PSC to approve this take over. The public wants transparency and protective regulations for the benefit of New York residents. It is crucial that the PSC appreciate the intense opposition against Iberdrola. Don’t force citizen groups to seek relief in court. Do your job and reject the Iberdrola approval. The people of New York are watching!
Cordially,
James Hall for CWW
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