An association representing 85 percent of New England power generators filed its opposition to the proposed $4.3-billion merger between Hartford-based Northeast Utilities and Boston-based NStar, marking the most significant opposition to the merger that was largely considered positive for the companies and the region.
The New England Power Generators Association – representing power plant owners such as NRG Energy and Dominion that supply nearly all of Connecticut’s electricity – intervened in the Massachusetts Department of Public Utilities review of the merger on Wednesday and plans to voice similar opposition in Connecticut, New Hampshire and Maine.
NU and NStar have stated their intent to pursue creating rate-based generation in states that allow utilities to own power plants, such as New Hampshire and Massachusetts. Connecticut’s deregulation does not allow utilities to operate power plants.
“NEPGA believes that, without appropriate safeguards for the competitive markets, the proposed merger will substantially and adversely impact the Commonwealth’s competitive electricity marketplace and roll back consumer protections, efficiency improvements and environmental benefits that have been painstakingly achieved over the past 10 years,” said Angela O’Connor, president of NEPGA, in a statement.
The NU-NStar merger will bring together four electric utilities and six natural gas utilities to leverage NU’s experience and ambition for expansion of the transmission system with NStar’s healthy balance sheet.
The merger needs several approvals before it can be finalized later this year, and the Massachusetts state approval is considered to be the hardest one to get.
