The state Public Regulatory Authority has given preliminary approval of Northeast Utilities' pending purchase of Boston-based NStar, according to state officials.
Northeast Utilities plans to acquire the Massachusetts energy company for $4.9 billion.
“The draft decision endorses a settlement agreement that will bring relief to Connecticut’s ratepayers, provide funding for energy efficiency and renewable energy programs, and guarantee investments in strengthening the ability of our electric grid to withstand severe storms in the future. It also brings numerous other benefits to our state, such as preserving open space land, and assuring the continued corporate presence of Northeast Utilities in our community,” Daniel Esty, commissioner of the state Department of Energy and Environmental Protection, said in a statement.
The deal provides at least $120 million in benefits in rate relief to Connecticut, including $25 million in uniform rate credits to residential, commercial and industrial customers of NU's subsidiary, Connecticut Light & Power, according to Gov. Dannel Malloy. The credits would be applied in the first billing cycle after the merger is completed.
"I am gratified that the PURA proposes to approve the settlement," said state Consumer Counsel Elin Swanson Katz. "PURA's proposed decision confirms that the merger, as conditioned by the settlement, will be good for Connecticut."
The agreement will also include a rate freeze through Dec. 1, 2014.
"We wanted to make sure the merger provided substantial benefits to Connecticut ratepayers," Attorney General George Jepsen said.
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Connecticut is also requesting $300 million for improvements and has made other demands.
Final approval is still requires. The two utilities have requested the agency's approval by April 2.
