Wednesday, July 02, 2008

NY Regulators: Make Iberdola commit to wind energy development

The staff of the state Public Service Commission has again advised its five-member board to disapprove the $4.5 billion sale of Energy East Corp. to Iberdrola SA, but staffers have added a big “however” on wind farms.

In a brief filed in the long-running case, the PSC staff has offered alternatives if the five public service commissioners approve the sale, according to James Denn, PSC spokesman.

Iberdrola, the European utility giant and global leader in wind turbine farms, would be allowed to own and operate wind farms within Energy East territory, but with public benefits attached to the agreement.

The staff recommended that Iberdrola’s $2 billion proposal to invest in New York be tied to possible ratepayer rebates. The PSC staff said that to ensure the promise to build more wind farms in New York, the state could set aside $200 million of Iberdrola cash to be returned to ratepayers if the investment never happens.

The alternative proposal, known as Exception 6 in the PSC reply brief, comes after months of criticism and speculation regarding PSC’s opposition to letting Iberdrola buy Energy East.

(Click to read entire article)

No comments: