Despite the abrupt resignation of one of its members and a one- week delay in a vote on the matter, the New York State Public Service Commission expects to rule soon on Spanish energy giant Iberdrola SA's proposed $4.5 billion takeover of Energy East.
James Denn, a spokesperson for the agency, said on Thursday that a decision more than likely will be made Sept. 3.
The five-member commission had planned for several weeks to vote on the matter Wednesday but, at the last minute, decided not to do so due to the absence of two members -- Robert Curry Jr. and Cheryl Buley.
Curry was out due to illness, Denn said, while Buley later Wednesday announced plans to move to Kentucky to be married. Buley's move was unexpected, and it means she most likely will not take part in the Iberdrola vote, Denn said.
The commission rescheduled the vote to be taken during an emergency meeting Sept 3, at which time Buley's resignation also will become effective.
Denn said only Buley could respond to questions concerning why she could not wait until after the vote to resign. Buley was unreachable as of press time, but already has said publicly that her resignation had nothing to do with the Iberdrola deal.
It is not the first time the commissioner has been linked to controversy, according to reports from The Associated Press. After a series of power outages in New York City during the summer of 2006, Democrats questioned Buley's qualifications to serve on the commission. A former public relations executive, Buley was, at that time, married to a GOP lobbyist who donated thousands of dollars to Republicans. Buley later accused former Gov. Eliot Spitzer's energy advisor, Steven Mitnick, with threatening her career.
At an Aug. 20 commission hearing, Buley expressed skepticism regarding Iberdrola's promise to invest $2 billion in wind generation in New York, pointing out that wind farm developers are eligible for huge federal and state subsidies.
"I find it disingenuous that some of these elected officials are misleading their constituents by saying that wind power is cheap," Buley said, according to the meeting transcript. "It doesn't come cheap. And it's the ratepayers who are subsidizing it."
Iberdrola's $2 billion pledge has drawn approval from a number of state, federal and local elected officials on both sides of the aisle, including Democratic Sens. Hillary Clinton and Charles Schumer, Republican state Sen. Jim Alesi and Gov. David A. Paterson.
Buley earned $109,800 per year as a member of the commission and was appointed in June 2006 by former Gov. George Pataki. Her term was set to expire in February 2012.
Iberdrola is seeking the commission's approval to finalize the deal with Energy East, parent company of Rochester Gas & Electric and New York State Electric and Gas (NYSEG). Announced last year, the deal would provide Iberdrola, one of the largest producers of wind energy in the world, with an additional platform for growth within the United States. Energy East also owns power companies serving Connecticut, Massachusetts and Maine, and regulators in each of those states have given the buyout their blessing.
Supporters of the buyout tout promises by Iberdrola to set aside at least $100 million in ratepayer benefits, in addition to the $2 billion promised for wind turbine development. The proposal continues to hit difficulties, however. In reviewing the case, Department of Public Service staff issued a recommendation that the commission oppose the deal out of concerns it will not best serve the public in terms of cost and competitiveness.
A particular sticking point with the Public Service staff is Iberdrola's unwillingness to sell its interests in wind power generating plants within Energy East territory, particular in Lewis and Herkimer counties. The department supports the separation of energy producers and distributors in the name of promoting competition.
In June, PSC Administrative Law Judge Rafael Epstein affirmed the staff's position, stating the terms of the takeover do not satisfy the public interest requirement of New York's utilities law.
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