Regulators on New York’s state Public Service Commission have voted unanimously to approve the buyout of Energy East by Spain-based world energy company Iberdrola for $4.6 billion.
This article from Forbes says there are some caveats to New York’s approval:
For example, the commissioners required Iberdrola to put aside $275 million to offset future rate increases. That’s compares with the $646 million PSC staff analysts initially proposed as a condition of the sale.
The commission said Wednesday that Iberdrola must sell the fossil fuel generating plants but may keep the wind energy plants as long as it commits to spending up to $200 million on wind energy development in the state. The company has publicly said it will spend $2 billion on wind energy in New York, but it hasn’t made a firm commitment.
Under the terms the PSC laid out, Iberdrola would also be required to make any future investments in wind energy using money from a non-Energy East subsidiary.
The commissioners, who have had Iberdrola’s proposal before them for more than a year, characterized their decision as a compromise that protects Energy East’s customers while not imposing conditions so onerous they’d cause Iberdrola – which is based in Spain – to nix the buyout.
Iberdola has not commented whether it would accept or reject the offer.