PSC Iberdrola Energy East July 3, 2008 Letter by James Hall

July 3, 2008

PSC Commissioners
C/O Hon. Jaclyn A. Brilling
Secretary to the Commission
New York State Public Service Commission
Agency Building 3
Albany, NY 12223-1350

Dear Commissioners:

Cohocton Wind Watch has expressed its opposition in detail to the Iberdrola acquisition of Energy East. Since our last submission, the media has continually reported that Iberdrola would be making a $2 billion investment in NYS subject to PSC approval. As previously indicated in the record of testimony before Judge Epstein from the Rochester evidentiary hearing, Iberdrola has transgressed EU Anti-trust law.

As you are already aware, the use of this $2 billion figure is really the funds already committed to existing industrial wind projects approved by the NYISO. For egomaniacal politicians and greed driven media publishers to imply that Iberdrola will be a savior for NYS energy policy is deceitful and dishonest.

If Iberdrola were a proven Anti-trust violator with a worldwide pattern of vertical domination of energy markets, why would PSC commissioners believe their business practices would be different in NYS? There will be no new windfall of meaningful investment. Iberdrola will just assume the debt of their current industrial wind developments as they come online after commissioning. The salient point is that Iberdrola will become the master controller of electric rates in the Energy East district while having the duel ability to acquire industrial wind projects throughout the rest of the state.

Now if this is not anticompetitive, just what is the purpose of the long enforced de-regulation utility policy of the Public Service Commission? Any change in the separation of generation from transmission/distribution to favor a foreign monopolist would adversely place other utilities at a systemic non-competitive position.

Your duty is to protect the public and NYS ratepayers. The arrogance Iberdrola demonstrates in the world press towards the PSC is intolerable. Their defiant attitude should foretell the manner that this conglomerate conducts business.
Cohocton Wind Watch has provided significant and voluminous data and evidence to the PSC. Please review all the facts that support our conclusions. Iberdrola is a company that has refined the reprehensible Enron model and will destroy the reliability of utility distribution, while causing dramatic electric rate increases for New Yorkers.

Cordially,

James Hall for CWW