NY Gov. Paterson weighs in (approvingly) on proposed Iberdrola-Energy East acquisition

On June 3, Iberdrola announced its planned investment in NY State renewable energy if allowed by the New York Public Service Commission (PSC) to acquire Energy East.

On June 4, Gov. David Paterson responded favorably to Iberdrola’s announcement, coming about as close to endorsing the proposed transaction as he can without explicitly endorsing it:

I am very pleased by Iberdrola’s announcement that it plans to invest $2 billion in the State over the next five years, pending approval of the company’s proposed acquisition of Energy East. This would be an unprecedented level of investment in clean energy development by a single company in New York.

The announcement demonstrates great commitment to growing the State’s renewable energy industry quickly, something that has been a top personal priority of mine for some time and was the subject of my Task Force on Renewable Energy that reported earlier this year. I am particularly impressed that Iberdrola’s commitment would represent one-quarter of the company’s planned capital investment in the U.S.

I look forward to the Public Service Commission’s speedy resolution of issues in the acquisition case before it. I am hopeful that the outcome will be one that provides an opportunity to Iberdrola to bring its financial strength and commitment to expand renewable energy generation in the State, while also protecting the interests of ratepayers in the Energy East service area.

The PSC is an independent body not obligated to follow the Governor’s encouragement. A PSC decision may come as early as this summer, following a recommendation from an administrative law judge.


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