Attorney General Richard Blumenthal requested the Connecticut Department of Public Utility Control to review the proposed merger of Northeast Utilities and NStar, a day after corporate executives said DPUC approval would not be required to complete the deal.
Northeast Utilities is issuing more than $4 billion in stock to acquire NStar, with the combined companies to retain the Northeast Utilities name with NStar formally a subsidiary. The new Northeast Utilities would have dual headquarters in Hartford and Boston.
“We believe that the only regulatory approval ”“ state regulatory approval ”“ to be required will be Massachusetts,” said Chuck Shivery, CEO of Northeast Utilities, in a Monday conference call with investment analysts. “However, you can appreciate we”™ll be working with the regulators in both Connecticut and New Hampshire to show them the benefits of this deal also.”
Without saying he would oppose the merger, Blumenthal vowed an independent review of the deal, and wants a formal overview as well by DPUC, to determine its impact on Connecticut utility customers, rates, operations, service and reliability. The Attorney General cited several laws supporting his case for a formal review, including Connecticut General Statute 16-43 which reads a “public service company shall obtain the approval of the Department of Public Utility Control to directly or indirectly merge, consolidate or make common stock with any other company.”
