New Haven utility parent UIL Holdings has reached a tentative settlement with Connecticut’s consumer advocate to clear a major stumbling block out of the way to its $3 billion merger with Spanish energy giant Iberdrola, although regulators still have to approve the deal.
UIL on Friday said the Office of Consumer Counsel had agreed to a deal to have UIL clean up its former English Station power plant in New Haven, which UIL sold in 2000 but contaminants remain on the site. UIL and the OCC have requested a meeting with the Connecticut Public Utilities Regulatory Authority for Thursday to divulge the details of the agreement.
The English Station cleanup was one of the many proposals UIL made in this second round of regulatory hearings after PURA indicted during the first round it would deny the proposed merger, because regulators were unsure how the transaction would impact ratepayers.
Since that initial denial, UIL resubmitted its application and made proposals to benefit ratepayers, including $68 million in rate credits, rate freezes, clean energy and disaster fund contributions, and upgrades to energy infrastructure.
PURA is expected to make a final ruling on the merger in early December.