David C. Amsler March 20, 2008 letter to the PSC

March 20, 2008

To: Hon. Jaclyn A. Brilling
Secretary to the Commission
New York State Public Service Commission
Agency Building 3
Albany, NY 12223-1350

From: David C. Amsler
VP Concerned Citizens of Cattaraugus County
417 Bush Hill Rd.
Franklinville, NY 14737

Ref: Case 07-M-0906-Iberdrola Merger.

Secretary Brilling:

As a holder of Energy East stock, it pains me that I must join in supporting the blocking of Iberdrola’s take over of Energy East’s assets in New York State. Any short term financial gain I would receive from the takeover will be outweighed by the long term damage done to this state and its residents.

Iberdrola owning both energy producing and distributing facilities in this state creates a monopoly situation that will be bad for New York’s residents and its economy.

Iberdrola has already been sited and fined for abusing its dominant market position elsewhere, and there is little reason to think they will not do so here.

Iberdrola stock is not directly available to US investors, nor is Iberdrola subject to any financial oversight by U.S. regulation. Further Iberdrola is itself subject to much speculation about pending takeover by larger companies leaving the PSC even less able to foresee the consequences of this takeover.

Iberdrola’s ownership of wind turbine facilities in this state is particularly troubling. Wind energy is more expensive than that from conventional sources, and Iberdrola would be able to pass the costs on to their captive customers without any competition or check by economic realities.

Higher electrical energy costs will only make this state less able to compete with other states and the in the global economy.

Higher electrical rates also inhibit progress on the two technologies that can drastically reduce our dependency on foreign energy and help reduce greenhouse gas production, specifically the new batteries which make the electric automobile feasible, and electrically powered heat pumps for heating homes and businesses. The typical automotive internal combustion engine only converts about 20% of the energy it consumes into motive power, while electric motors operate at near 90%, and in automobiles they can recapture energy during braking.. Heat pumps can move several times more heat energy than they consume, while conventional combustion furnaces can only deliver less than the energy they consume.

The advent of these technologies just as the price for imported energy rises gives this country, with its entrepreneurial culture, a golden opportunity to take leadership in these fields, creating real jobs.

There are many ways to produce electrical energy that are clean, economical, and largely CO2 free. Allowing, let alone encouraging, uneconomical electrical energy will only rob us of the opportunity these emerging technologies present.

PSC’s responsibility is to the people of this state, and their economic well being. I strongly support blocking of this takeover.

Thank you for your consideration.

David C. Amsler