Tuesday, April 15, 2008

RG&E purchase may be in trouble, Iberdrola chief says

The purchase of Rochester Gas & Electric’s parent company by a Spanish energy giant may be in jeopardy.

Ibedrola S.A. Chairman Ignacio Sanchez Galan said this week that unreasonable conditions imposed by the New York state Public Service Commission might cause the company to reconsider its plans to purchase Maine-based Energy East Corp. for $4.5 billion.

Iberdrola already has taken some sizable steps to gain New York’s approval for the deal. On March 14, the company agreed to several Public Service Commission conditions, including putting up for bid and selling the RG&E Russell Station power generating plant in Greece and four other plants.

The company also agreed to spend more than $100 million over the next three years developing wind-generated power in New York state and to review its remediation plans and schedules for its Beebee Station and Andrews Street site with the city of Rochester.

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