CITIZEN POWER ALLIANCE

In negotiations over the last several months, the commission staff has extracted several concessions out of Iberdrola, including a promise of $201 million in rate subsidies to existing Energy East customers to ensure that they do not pay more for electricity as a result of the sale.

But the commission staff is also insisting that Iberdrola agree to sell off Energy East’s existing wind turbine facilities, arguing that owning them would violate the vertical power rules.

An administrative law judge is expected to issue a recommendation on the deal within weeks, though neither the judge’s recommendations nor those of the commission staff are binding on the five-member commission itself.

James Denn, a spokesman for the commission, said the added investment would not allay the commission’s concern, adding, “On this deal, they would be able to produce, transmit, and distribute power within their region.” . Mr. Denn also noted that Iberdrola had not formally submitted the new proposal to the commission; the current plan has the company making only a binding commitment of $100 million worth of investment in the state.

The commission staff also wants Iberdrola to increase the subsidies, known as ratepayer benefits, to $644 million, as well as to agree to provisions in the merger that would insulate any New York facilities from potential financial problems at Iberdrola.

Iberdrola is one of several foreign-owned energy companies that have entered the United States market, where rising gas prices and a spate of state laws requiring more energy from renewable sources have made wind, solar and hydroelectric power increasingly attractive.

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