Federal officials have approved Northeast Utilities’ proposed $4.66 billion purchase of a Massachusetts electric and gas utility, saying the massive deal will not hinder competition, increase rates or weaken regulation, The Associated Press reports.
The deal, which was approved by the Federal Energy Regulatory Commission on Wednesday, must still be approved by Massachusetts regulators who are reviewing the proposal.
The federal approval is a boost to the deal, representatives of the two companies said Thursday.
The deal is among the largest in the utility industry in New England and would form the region’s biggest utility company. It has become an easy target for industry rivals, environmentalists and others taking part in regulatory proceedings in Massachusetts.
Connecticut regulators have refused to take up the matter, prompting the state’s chief consumer advocate to go to court to try to force the Department of Public Utility Control to review the deal.
FERC said in its 35-page decision that it reviewed the proposed deal’s impact on competition, rates and regulation. The agency said the deal will have no adverse effect on competition and that it will have a minimal impact on market concentration in New England.
Northeast Utilities owns or controls about 1,300 megawatts, which FERC said is less than 4 percent of total generation in the region. NStar has divested all of its generation, the federal agency said.
Federal regulators also said the utilities’ application does not indicate that customer rates will increase as a result of costs related to the deal.
