The New York state Public Service Commission Wednesday afternoon approved the takeover of Energy East Corporation, the parent company of RG&E and NYSEG, by Spanish energy giant Iberdrola. The vote was 4-0.
It is a blockbuster deal that took months of negotiations between Iberdrola and the P.S.C staff. Just how it affects RG&E customers' bills is unclear. But Iberdrola did agree to provide $275-million in public benefits to customers. The P.S.C. Staff originally asked for more than $600 million in ratepayer benefits.
Rochester Gas and Electric was acquired by Energy East several years ago.
Iberdrola will also be required to make a $200 million investment in renewable energy resources like wind power. The OK is also contingent on Iberdrola meeting numerous conditions that affect safety and reliability, and customer service.
Local customer advocate Charles Straka, who has represented consumers in previous RG&E rate cases, remains skeptical. He says the deal would only provide a five percent decrease in rates for customers. Straka says the P.S.C. staff has concluded that RG&E electric rates are excessive.
RG&E is at the end of a multi-year rate agreement with the P.S.C., and a new rate case is expected to begin within a year. It has been delayed by the hearings regarding Iberdrola.
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