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The Spanish company that wants to buy the parent of Rochester Gas and Electric Corp. promised Tuesday to spend $2 billion on renewable energy facilities in New York if state regulators approve the takeover.
Iberdrola SA is known as the world's leading developer of wind farms, and it wants to build more of them in New York over the next five years.
Joined by several politicians for a news conference at the Capitol, company officials sought to sway the state Public Service Commission, whose approval is needed for the $4.5 billion purchase of Energy East Corp.
Some of the elected officials were directly or indirectly critical of the PSC, whose staff has recommended against the deal.
"It is imperative that companies willing to invest in New York do not meet numerous bureaucratic roadblocks like the ones experienced by Iberdrola," said Senate Commerce Committee Chairman James Alesi, R-Perinton.
"We're at a crossroads here," said Senate Energy Committee Chairman George Maziarz, R-Newfane, Niagara County. "This is about billions of dollars in investments."
Assembly Energy Committee Chairman Kevin Cahill, D-Kingston, Ulster County, wasn't at the news conference. He said later that he neither supports nor opposes the deal and wants to see what the PSC decides before considering legislative action.
As for Iberdrola, an official of the company made clear that it plans to invest somewhere in the United States. "We don't need to do this in New York, but we'd like to do this in New York," said Pedro Azagra, director for corporate development.
The PSC staff has expressed concern about Iberdrola's plans to own both power generation and distribution facilities and wants the company to provide more benefits for consumers. The staff said Iberdrola should provide $644 million in rate cuts and other benefits, while the company offered $200 million.
Energy East is the parent of both RG&E and New York State Electric and Gas.
Iberdrola said it wants to build about 1,000 megawatts of additional wind power facilities in New York. That drew praise from Sen. Charles Schumer, D-N.Y., who has been following the Iberdrola deal closely.
"Iberdrola is stepping up to the plate in a real way that can reduce costs to New York energy consumers and create jobs by investing in clean technology like wind power," Schumer said in a statement. "The Public Service Commission ought to get out of the way when it comes to investing in renewable power, and instead concentrate on making sure consumers don't get burned by rate hikes as a result of this merger."
PSC spokesman James Denn said state regulators were "pleased and encouraged by Iberdrola's announcement that it wants to make future investments in New York."
Denn said Iberdrola could make the investment plan a part of the formal proposal that the commission is considering.
The case currently is in the hands of PSC Administrative Law Judge Rafael Epstein, who conducted public hearings around the state earlier this year. He is to make a recommendation to the five-member commission.
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