NYSEG critic to get his say by LARRY RULISON

ALBANY -- A former New York State Electric & Gas executive who is crying foul about the company has been allowed to join the company's merger proceeding before state regulators.

The New Jersey man, Mark Corbett, says he is the former director of human resources for NYSEG, a Rochester-based utility that is part of Energy East Corp. of Maine. NYSEG has about 45,000 customers in the Capital Region.

Energy East, which also owns Rochester Gas & Electric, is poised to become part of Iberdrola SA of Spain in a $4.5 billion merger once the state Public Service Commission approves the deal. The PSC, which is made up of a five-person board of political appointees, regulates electric utilities in the state.

Staff at the PSC, which does the day-to-day work of the PSC board, are currently involved in negotiations with the companies to come to a settlement agreement on the merger.

Such a settlement would likely include concessions from Iberdrola to provide the public with benefits from the merger that would be acceptable to the PSC commissioners.

Other entities such as state agencies and business and consumer groups are involved in the talks as what the PSC calls "active parties" in the case.

In a ruling made Friday, the administrative law judge in the case, Rafael Epstein, ruled that Corbett could be granted active party status despite the objections of Energy East, RG&E and NYSEG.

Epstein said that Corbett has sued NYSEG. He also says Corbett has alleged that Energy East "falsely represented" that it had met its obligations under the federal Employee Retirement Income Security Act.

"He says this alleged misrepresentation, in turn, has affected Energy East's economic value and liabilities," the judge wrote in his ruling.

Iberdrola would not comment on the ruling. Spokesmen for Energy East, NYSEG and RG&E could not be reached.

But Energy East, at least, believes Corbett will hamper the settlement talks, which are expected to be completed by this month.

"They conclude that his participation, rather than contributing to the record, would have the opposite effect by impeding the efficient conduct of the proceeding," the judge wrote.