Saturday, March 24, 2007

British Co. to Take Over Brooklyn-Based Electric Business

Prelude to Merger?

England's National Grid and (Brooklyn and Long Island's) Keyspan have announced an "amended agreement" with the Long Island Power Authority to operate the electricity and power transmission business on Long Island until 2013. This brings us one step closer to the controversial merger of National Grid and Keyspan, expected to go through mid 2007.

Not everyone sees this as a good thing, of course. According to Newsday, legislators and experts who were "already wary of the proposed buyout of KeySpan by National Grid" were unmoved by the news, saying that the $236 million-plus in promised benefits "fall short."

U.S. Senator Charles Schumer said, "I remain skeptical that the merger will benefit ratepayers."

According to Long Island Business News, "The State Department of Public Service issued a 200-page report that slams the proposed merger between KeySpan and National Grid, calling it a bad deal for customers."

For a previous story about the merger, see here.

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