CITIZEN POWER ALLIANCE

A utility takeover proposal winding its way through the state’s regulatory process will potentially impact the New York operations of one of the world’s largest wind power developers.

Spanish utility company Iberdrola SA wants to acquire regional utility Energy East Corp. for $4.6 billion. It wants to retain its wind power interests as it does so, and build new wind farms as well. Regulators object to this on anti-competitive grounds.

Negotiations between staff of the Department of Public Service and Iberdrola failed to reach a resolution in March, sending the matter to a judge.

In court briefs filed earlier this week before Administrative Law Judge Rafael Epstein, staff of the Department of Public Service argued that if Iberdrola is allowed to continue to own wind energy farms within the electrical service territories it would acquire from Energy East Corp. it could enable Iberdrola to exert “vertical market power” over the price of wholesale electricity generated by wind farms in that area.

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