ATTORNEY GENERAL RENEWS CALL
FOR STATE REVIEW OF NU/NSTAR MERGER
(HARTFORD) – Attorney General George Jepsen renewed his efforts today to persuade state utility regulators to recognize their authority and open a state review of the proposed merger of Northeast Utilities and NSTAR, a Boston-based utility holding company.
The Attorney General filed comments with the state Public Utilities Regulatory Authority, urging them to issue a declaratory ruling, as requested by the NRG Companies, that the proposed merger between the two utilities requires PURA review and approval.
While PURA has so far failed to agree with the Attorney General’s position, on Dec. 14 the regulators opened further proceedings to consider its authority to review, condition or approve the proposed NU/NSTAR merger.
NU’s performance during Tropical Storm Irene and the October snow storm, as assessed by Witt Associates, raises significant additional issues about the utility’s management and its executive leadership, which must be addressed by the regulators, the Attorney General said.
“The Witt report found serious deficiencies in NU’s and CL&P’s management preparation for and response to these major storm-related outages. The proposed merger promises to further disrupt NU and CL&P management’s ability to prepare for and respond to the next storm,” Attorney General Jepsen said.
The Attorney General had argued previously that the merger would be a “change in control” that would create a new holding company, with new officers and new directors, which that would exercise control over two of the state’s largest public service companies.
Assistant Attorney Generals John Wright and Michael Wertheimer are handing this matter for the Attorney General with Associate Attorney General Joseph Rubin.
Susan E. Kinsman
Facebook: Attorney General George Jepsen