But so far the staff of the New York Department of Public Service has said ownership of both wind turbines and distribution-transmission lines is a no-no. The staff has opposed Iberdrola's plan to build three wind farms in Energy East territory.
The staff's position is important because it advises the five-member state Public Service Commission, which is to rule on the Iberdrola-Energy East deal this summer.
In short, the staff is saying that Iberdrola can deliver electricity and natural gas — what RG&E and NYSEG do now — but Iberdrola cannot also "make" the products, even if it uses the wind instead of coal or natural gas to generate electricity.
The staff's position is part of New York policy on energy deregulation, but it has left Iberdrola officials feeling as if they are facing an unfathomable government demand, especially because the state has set a goal of getting 25 percent of its energy from renewable sources such as wind and hydropower by 2013.
Iberdrola officials said they will walk away from the Energy East deal if the PSC votes to approve it but also insists on separating Iberdrola from its three proposed wind farms in Energy East territory.
Central to the disagreement is a worry that Iberdrola could exercise too much control over the electricity market, which might thwart competition and harm consumers. RG&E and NYSEG ratepayers who attended public hearings on the proposed deal earlier this year urged that any sale of Energy East lead to lower, not higher, rates.
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