Northeast Utilities and NStar claim in their Connecticut merger application that storm power outage restoration in the state will improve if regulators approve their $4.7 billion combination.
NU, of Hartford, is under heavy scrutiny from the public, state officials and regulators for its response to two widespread power outages in 2011.
The outages – which left hundreds of thousands of ratepayers in the dark, some for as long as 11 days – caused the Public Utilities Regulatory Authority to reverse its 16-month-old decision not to conduct a full review of the merger first proposed on Oct. 16, 2010.
Because PURA reversed its decision earlier in the week and now will review the merger over the next three months, NU and NStar formally filed for merger approval on Thursday.
In that filing, NU and NStar, of Boston, said the merger will create a financially solid company with greater resources for storm restoration, infrastructure improvements and reliable electric service to Connecticut customers. The companies also asserted the merger will create a 10-year cost savings of $784 million, a claim they made in a similar filing to the Massachusetts Department of Public Utilities.
The proposal achieved all its necessary approvals except from PURA and Massachusetts DPU. The companies have self-imposed a deadline of April 16 to complete the merger.
PURA agreed to finish its proceedings by the deadline. In its scheduled released Friday, regulators want to start hearings Feb. 14, issue a draft decision by March 26, and come to a final decision April 2.
If approved, the merged company still called Northeast Utilities will be the largest utility parent in New England with 3.5 million customers in Connecticut, Massachusetts and New Hampshire, including from subsidiaries based in Berlin – Yankee Gas and Connecticut Light & Power.
