CITIZEN POWER ALLIANCE

A $4.5 billion deal to buy the parent of Rochester Gas and Electric Corp. could sink if a state agency continues with its demands.

Almost a year after the deal was proposed, Department of Public Service staffers continue to mull the sale of Energy East Corp. to Spanish utility giant Iberdrola SA, even after other governments have approved the deal and moved on.

A key step in the New York process could come by the end of the week, when an administrative law judge for the Department of Public Service might issue his recommendation.

Judge Rafael Epstein was asked by Iberdrola to report his findings by Friday because the utility still hopes to complete the purchase of Energy East by the end of June. But Epstein is under no obligation to do so.

Epstein conducted public hearings around the state, including a standing-room-only Rochester hearing in February. His report will help guide the five-member Public Service Commission, which has the final say.

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