Tuesday, August 19, 2008

PSC seen approving Iberdrola deal

The state Public Service Commission won’t vote until a week from tomorrow on whether to let the Spanish company Iberdrola buy out Energy East, the parent company to Rochester Gas and Electric Co. and New York State Electric and Gas Corp., which between them have more than 2 million customers upstate. But some people who are following the deal closely say a yes vote is likely.

But the commission is also likely to require the firm to sell some of its electric-generating capacity, including the Russell Station in Rochester and various hydroelectric facilities to reduce its “vertical power’’ (generation as well as transmission and distribution capability) in the same areas.

Under this scenario, the firm would also have to sign a deal with the state Empire State Development Corp. to spend $2 billion on new wind-power facilities.

Such a decision by the commission, which regulates utilities in the state, would be good news to those who think a big boost in wind power is important for the state’s economic and environmental future, but troublesome who want to see a strict separation between companies that generate power and those that deliver it.

The PSC is slated to discuss the plan tomorrow.

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