Dive Brief:
- Federal regulators have approved the merger of Iberdrola USA and UIL Holdings, potentially creating one of the largest utilities in the United State with 6.7 GW of installed capacity.
- The two companies would serve 3 million customers and would be the second largest wind generator in the country, serving customers in New York, Connecticut, Maine and Massachusetts, and other states.
Dive Insight:
FERC has approved the merger of Iberdrola and UIL, moving the two companies a step closer to creating one of the largest utilities in the nation, and the second largest wind developer. Connecticut and Massachusetts must also consider the deal, which is expected to close this year.
The commission found little reason for market concerns, noting that the companies both own or control generation in only one market, ISO New England, and do not control generation in any sub-markets. And FERC added that the two companies' share of capacity that they own or control together, including potential imports from New York ISO, reflects only 0.36% and 0.55% of the installed capacity in the ISO-NE market.
Once combined, the company will have a net income of almost $600 million, 3.1 million of points of supply. The deal, announced in February, will be completed with an exchange of Iberdrola USA shares for UIL stock, along with cash payments to UIL shareholders of $597 million.
