PSC urged to drop demands in Iberdrola deal

U.S. Sen. Charles E. Schumer, D-N.Y., said Monday he is urging the state Public Service Commission to drop its demands on Iberdrola to divest its wind power assets.

The Spain-based company wants to acquire Energy East, parent of New York State Electric & Gas. The demands threaten to derail the proposed acquisition Schumer said.

Schumer said the PSC should "broker a deal that would keep customer rates low, provide system reliability and bring much-needed wind power to New York."

Iberdrola said last week it wants to invest $2 billion in wind power projects for the state.

While every other state where Energy East owns assets -- including Maine, Connecticut and New Hampshire -- have approved the acquisition, New York has not signed off on the about $4.5 billion deal, Schumer said.