The state Public Service Commission voted, 4-0, to approve the merger, ending a lengthy review that led to state regulators imposing a host of conditions on the deal, including a reduction of as much as 5 percent, or $275 million, in electricity and natural gas delivery rates over five years. Those conditions also include a commitment by Iberdrola to spend $200 million on new wind power facilities in New York within roughly two years, which PSC officials would add about 100 megawatts of renewable generating capacity. Iberdrola has said it is considering up to $2 billion in investments in wind power and other renewable energy projects in New York if the deal was approved, but that pledge was not part of the merger so it was not considered as part of the debate at the PSC. The commission also imposed several conditions to limit the market power that Iberdrola would gain by owning wind energy projects at the same time that it owns electricity transmission systems within the state. Some PSC commissioners had raised concerns that Iberdrola would have too much market clout — and potentially could unfairly favor its own wind farms — if it was permitted to own substantial wind power facilities, as well as the power lines that transmit that electricity and that of competing power plants. The PSC doubled the size of the $200 million “binding commitment” it demanded that Iberdrola make for investments in new wind power projects in New York within two years of the merger taking effect. read more

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