Iberdrola needs to walk away from the Energy East acquisition

The courageous ruling by the PSC administrative law judge to reject approval of the Iberdrola acquisition of Energy East is getting intense criticism by all the usual suspects. On the face of all the hullaballoo coming from self-indulgent beholding politicians, covetous transnational corporations and their business interest crony groups, the public should savor the moment. Who protects the energy consumer and the hard-pressed taxpayer? Well, we have an answer and his name is Rafael Epstein!

As any good judge knows, applying sound legal decisions to rulings is the true purpose of the office. Since NYS electric utility deregulation, the Public Service Commission has operated under the legal principle that power generation must be separate from utility transmission and distribution. Iberdrola is a foreign predator and corporate raider who wants to be immune from such legal niceties as well established PSC mandates. What Iberdrola demands is that the political class runs roughshod over any vestige of public protective regulation.

Iberdrola wants to be able to develop industrial wind projects anywhere in New York and pass on the expense of this costly and unreliable electric generation onto the backs of the ratepayer. So why do selective corporate business support the Energy East acquisition? Simply put, favored companies receive their reward with the promise of lower and discounted utility rates for volume usage. The true cost of electric generation is then passed on to the residential consumer and small business accounts.

Shameless hacks like Senator Schumer expend valuable political capital to pressure the PSC to violate the law and approve the Energy East deal. This is the same “public servant”, who made a national issue of the United Arab Emirates - Dubai Ports World takeover of U.S. port facilities. Recently reported, Iberdrola has signed a contract with Abu Dhabi National Energy Co (Taqa), opening investment opportunities with Middle East funding for the Spanish energy group that includes North America. It seems that Schumer applies situation ethics, when he attempts to influence New York State policy, which is well outside his charge as a U.S. Senator.

Judge Epstein’s ruling states that Iberdrola needs to sell its wind power facilities within New York's Energy East territory. Any proponent who supports the Iberdrola acquisition is really saying that the PSC should violate its own deregulation policy for the benefit of the special interests of a foreign conglomerate. The tortured logic employed by big business apologists that condemn the ruling does not pass the smell test. Any perceptive reading of the entire ruling demonstrates that critics are only proficient in disseminating disinformation.

Local politicians need to take their own reality check. Comments attributed in the Democrat and Chronicle to State Sen. James Alesi and Assemblyman Joseph Morelle -“said the agency was being short-sighted”, are unfortunate. However, the D&C has proven that their reporting is on par with a wind industry public relations agency. Let us hope that constituents of the Alesi and Morelle will contact their representative and voice their full support for the Epstein ruling.

The recommendation report includes concerns about “Iberdrola being a foreign held corporation, will be beyond the reach of the laws of the State of New York or the United States, and will not have to answer to the Securities and Exchange Commission and subject to takeover by other foreign corporations, and that utilities in New York will be at risk”.

Observers of the Spanish corporate deals know that several European companies are presently vying for control of Iberdrola itself. What rational person would want a foreign company as your electric supplier, especially when its own management and stability is in play?

The public should send the PSC commissioners a concise and validating approval of the Judge Epstein ruling. It is crucial to make your voice heard, especially when a genuine public advocate has the guts to stand up to the utility corporate monopoly and their political defenders. Finally, shame on all those NYS business enterprises, that are so eager to support the divestiture of domestic control from Energy East for the benefit of the world’s biggest wind developer.

It is rare in a world that prizes centralist economic globalization at the expense of individual financial independence that a decision is correct. All New York State residents owe a well deserved round of thanks to Judge Rafael Epstein. Everyone who has been involved in opposing the Iberdrola acquisition of Energy East also warrants our gratitude. The PSC regulatory process has worked up to this point. Follow-up and write the PSC commissioners and remain eternally vigilant.

James Hall