Why are New York Political and Business Leaders putting the interests of Spain-based Iberdrola ahead of the interests of New York by Glenn R. Schleede

Why are New York Political and Business Leaders putting the interests of Spain-based Iberdrola ahead of the interests of New York’s taxpayers and electric customers?

New York’s taxpayers and electric customers are facing a serious threat:

• Iberdrola, the Spanish company that wishes to acquire Energy East and its electric and gas distribution subsidiaries1 is insisting that it will “walk away from” the deal if it is not permitted to build “wind farms” in New York.2
• High-powered New York political, business, labor and media leaders (including Governor Paterson and Senator Schumer) are working to get members of the NY State Public Utility Commission (NYS PSC) to overturn the PSC Staff’s recommendation and the Administrative Law Judge’s conclusion that Iberdrola should not be permitted to own both electric generating capacity (including “wind farms”) and electric distribution companies in NY.
• These NY “leaders” are striving in favor of Iberdrola despite the demonstrable negative impacts that Iberdrola’s proposal would have on New York’s taxpayers, electric customers, and state economy.

This brief paper:

• Provides details on the financial reason that apparently underlies Iberdrola’s insistence on the right to own “wind farms” in NY. That is, huge tax breaks available for “wind farms” could permit Iberdrola to sharply reduce or eliminate liability for paying federal or state tax income tax on profits from Energy East Companies’ electricity and gas distribution operations.
• Speculates about the reasons why NY “leaders” are working so hard on behalf of Iberdrola – and against the interests of NY taxpayers and electric customers – and the state’s economy.

(Click to read entire report)