Justice seeks information on Con Ed-Northeast Utilities merger

Grid operator ISO New England said Friday it has received a civil investigative demand from the US Department of Justice to produce information in conjunction with the Justice Department's investigation of the acquisition of Northeast Utilities by Consolidated Edison Inc. The Northeast Utilities combination with Consolidated Edison will create the largest distributor of electricity in the US, with more than 5 million customers, and 1.4 million natural gas customers.


Grid operator ISO New England said Friday it has received a civil investigative demand from the US Department of Justice to produce information in conjunction with the Justice Department's investigation of the acquisition of Northeast Utilities by Consolidated Edison Inc.

The Justice Department has asked the ISO to submit, among other documents, information that shows how it determines who can participate in the market and the allocation of its requirements for procuring reserves between spinning and nonspinning reserves.

It has also asked for a list of all planned or unplanned outage of any generation facility and for each outage, identification of facility's owner, duration of the outage, and the reason for the outage.

Consolidated Edison and Northeast Utilities announced Oct. 13, 1999, an agreement under which Consolidated Edison would buy Northeast Utilities in a deal worth about $7.5 billion, including debt, capitalized leases, and preferred securities.

Northeast Utilities is New England's largest electric utility serving more than 1.7 million customers in Connecticut, Massachusetts, and New Hampshire. The combination with Consolidated Edison will create the largest distributor of electricity in the US, with more than 5 million customers, and 1.4 million natural gas customers. The combined company will have $28 billion in assets and annual revenues of $12 billion.

The transaction has received approval by the Federal Energy Regulatory Commission, which is also conducting an investigation of the ISO New England bulk power markets.

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