Iberdrola accepts PSC conditions, will buy Energy East
Iberdrola SA, the world’s fourth-largest utility, said today it will go ahead with its $4.5 billion purchase of Energy East Corp., parent of Rochester Gas and Electric and New York State Electric and Gas.
The Spanish company said it accepts the conditions set by the state Public Service Commission, which include $275 million in rate relief for RG&E and NYSEG customers.
“Iberdrola is pleased to accept this opportunity to help the Empire State meet its energy, environmental and economic goals,” said Ignacio Sanchez Galán, Iberdrola chairman and chief executive. “We are confident that Iberdrola’s record of service, reliability, corporate citizenship and development of renewable energy resources are well matched to the opportunities and needs in New York’s energy sector.”
The PSC's 4-to-0 approval of the deal last week was followed by the state agency's issuance of a formal order Tuesday, which required Iberdrola to completely accept the conditions if the company wanted to proceed.
In addition to the $275 million of public benefits to customers, Iberdrola agreed to distribute to ratepayers 90 percent of the profits from the sale of fossil-fuel plants such as Russell Station in Greece.
The Bilbao, Spain-based company won a key victory when the PSC allowed the new Iberdrola-Energy East entity to keep hydroelectric plants and to proceed with plans for $2 billion in new wind turbine farms in the state.