Iberdrola SA in talks with N.Y. PSC

ALBANY, N.Y., March 19 (UPI) -- Iberdrola SA is working with New York state regulators on its planned acquisition of Energy East Corp.

The Spanish renewable energy firm and utility is offering concessions to New York officials in order to move along its planned $4.5 billion acquisition of Energy East, which serves 1.4 million upstate New York customers, the Albany Times Union newspaper reported.

Regulators want Iberdrola to agree to sell all of Energy East's fossil fuel power plants in New York. The state Public Service Commission is also asking Iberdrola to get out of all power generation in New York, the newspaper said.

Iberdrola has said if it is allowed to keep its wind farms, it will spend at least $100 million on new wind projects in the state through 2011; it also offered $201.6 million in positive-benefit adjustments for New York customers.

The takeover was first proposed in August 2007 but it's still waiting for the PSC to sign off on the deal. PSC staff members have been negotiating with Iberdrola and Energy East over a deal that would give New York consumers benefits such as rate decreases, the newspaper reported.

After talks broke down last Wednesday, the case went before an administrative law judge who will make his own recommendation to the PSC.