Monday, June 16, 2008

NY Judge Urges Regulators To Nix Iberdrola's Energy East Bid

ALBANY, N.Y. (AP)--An administrative law judge is advising New York utility regulators to nix a global power company's planned $4.6-billion buyout of Energy East Corp. (EAS), which serves four Northeastern states.

Iberdrola SA (IBDRY) needs approval from New York's Public Service Commission to buy Energy East, but the agency's staff opposes the deal because of concerns about whether it will best serve the public in cost and competitiveness.

Administrative Law Judge Rafael Epstein reviewed the proposal and recommends blocking the transaction because it doesn't satisfy the public interest requirement of state utilities law.

Epstein's non-binding opinion recommends a series of conditions the PSC should impose if it approves the deal, including limits on the generating plants the Spanish company may own.

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