Connecticut regulators will denied the request of Spain's leading electricity and national gas utility to acquire the parent company of United Illuminating, saying the move could compromise UI’s ability to serve the public.
Regulators said in a draft ruling Tuesday the acquisition is not in the public’s best interest.
According to the Public Utilities Regulatory Authority, Spanish utility company Iberdorla does not “possess the requisite suitability and responsibility to acquire UIL Holdings Corporation” and is not guaranteed to “provide safe, adequate, and reliable service” in the northeastern U.S.
Iberdorla announced plans to purchase UIL Holdings Corp. in February. The deal was valued at about $3 billion.
Had the acquisition gone through, Iberdorla would have taken over operations in Connecticut, Maine, Massachusetts and New York, where UIL currently serves 3.1 million electric and national gas customers.
