Berlin electric utility Connecticut Light & Power’s widespread power outages this year continue to haunt its parent’s attempt to form the largest utility company in New England.
Motions filed in Connecticut and Massachusetts have sought to stop the merger between Hartford-based Northeast Utilities and Boston-based NStar, citing the inadequacies of the companies power restoration efforts following Tropical Irene in August and the Oct. 29 snowstorm.
The Massachusetts Department of Energy Resources modified a previous motion this week to delay that state’s merger review, The Associated Press reports. The new motion says NU and NStar need to prove to Massachusetts regulators that their storm response plans are adequate. The motion previously called for a delay in the merger review until NU and NStar undergo a full rate review, a process that could take a year or more.On Thursday, NU said Massachusetts DPU should not grant the proposal to delay the merger any further. DPU already is reviewing NStar and NU’s storm response in a completely separate docket, and that review will continue regardless of whether the merger is approved.
“The Department of Public Utilities should not grant the stay, as granting it would delay the merger benefits for customers,” said Deborah Beauchamp, NU spokeswoman.
In Connecticut last week, NRG Energy, Inc. – operator of nine Connecticut power plants – filed a motion with the state Public Utilities Regulatory Authority saying CL&P’s response to the two power outages necessitates Connecticut undergo a full review of the proposed merger. PURA had previously decided to not review the merger and will make a ruling on the NRG filing by Jan. 18.
The calls for delay are significant because NU’s and NStar’s self-imposed deadline for the merger is April 16. NU previously said the company doesn’t anticipate completing the merger until sometime in the first quarter. The only remaining approvals needed are from the Massachusetts Department of Public Utilities and the U.S. Nuclear Regulatory Commission.
The $4.7 billion merger between NU and NStar was first proposed on Oct. 16, 2010. It would create a company with six electric and natural gas subsidiaries – including CL&P and Berlin-based Yankee Gas – with 3.5 million customers in Connecticut, Massachusetts and New Hampshire.
