Another showdown appears to be brewing between the state Department of Public Service and Energy East Corp.
An attorney for the department believes Energy East, parent of New York State Electric & Gas and Rochester Gas and Electric, is doing OK despite the recession and credit crunch.
But officials from NYSEG and RG&E apparently feel otherwise.
According to letters from the department and its general counsel, Peter McGowan, NYSEG and RG&E wanted an unspecified and temporary rate increase at the end of 2008. The utilities also plan to cut their capital spending plans by 50 percent.
In letters from McGowan, obtained by the Democrat and Chronicle newspaper in Rochester through a Freedom of Information Law request, it is clear that the 2008 battle over the $4.6 billion purchase of Energy East by Iberdrola SA of Spain won't be the last.
(Click to read entire article)