State to Review Northeast Utilities-NStar Deal

The Public Utilities Regulatory Authority said on Wednesday the deal to buy NStar can't go forward without its approval.

State regulators are now reviewing Northeast Utilities' proposed $4.7 billion purchase of a Massachusetts electric company, reversing their previous stance against getting involved.

The Public Utilities Regulatory Authority said on Wednesday the deal to buy NStar can't go forward without its approval.

Regulators said they acted because NStar shareholders will own about 44 percent of the Hartford-based Northeast Utilities -- large enough to require regulators to become involved.

Connecticut also said the conditions of merger approval in Massachusetts might affect future policy and resources related to Northeast Utilities subsidiaries in Connecticut.

"This transaction would put CL&P (Connecticut Light & Power) and Yankee Gas under a much larger corporate parent with headquarters in both Hartford and Boston. PURA may need to put conditions in place to ensure that Northeast Utilities, CL&P and Yankee Gas will be responsive to Connecticut’s needs and concerns, including those relating to storm response, customer service, communications with individuals and towns, infrastructure development, and other issues," State Consumer Counsel Elin Swanson Katz said in a statement. 

Attorney General George Jepsen said Northeast Utilities plans to complete the merger in April.

“This decision was a long time in coming. The review is important because it means the interests of Connecticut and NU’s Connecticut customers may be considered before any merger goes forward,” Jepsen said.

Northeast Utilities spokesman Al Lara said the utility is disappointed with the decision, but will soon submit the merger application.

Copyright AP - Associated Press
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