FERC last week gave its seal of approval to the $6.4 billionmarriage of two major northeastern utilities — Energy East Corp.,parent of New York State Electric & Gas (NYSEG), and CMP Group,parent of Central Maine Power — putting them clearly on the pathto becoming a major force in the Northeast energy market.

The Commission’s ruling moves Energy East of Stamford, CN, onestep closer to snatching up CMP Group for about $1.2 billion incash and debt, and realizing its goal of becoming a leadingregional distributor of gas and electricity. The merger stillawaits the approval of the Securities and Exchange Commission.Energy East said it expects to close the transaction by the end ofthe second quarter.

Aside from seeking to acquire the Augusta, ME-based CMP Group,Energy East in February completed a merger with Connecticut EnergyCorp., which owns Southern Connecticut Gas. The Connecticut LDCserves about 160,000 gas customers in the state. It also is lookingto buy CTG Resources, which owns Connecticut Natural Gas (CNG), anLDC serving 142,000 customers primarily in the greater Hartford andGreenwich areas. And, it’s signed a definitive agreement to acquireBerkshire Energy Resources, parent of Berkshire Gas, a gas providerserving 34,000 customers in the western section of Massachusetts.The three companies will become wholly-owned subsidiaries of EnergyEast.

Once all of the merger transactions are completed by late June,Energy East estimates it will serve about two million energycustomers — 1.4 million electric and 600,000 natural gas — inupstate New York and New England.

In addition to NYSEG, which alone serves over one millionpower/gas customers in upstate New York, Energy East has a fullrange of energy-related operations in Massachusetts, Maine, NewHampshire, Vermont and New Jersey.

CMP’s Central Maine, Maine’s largest utility, serves about533,000 customers in the central and southern parts of the state.Central Maine owns a 78% interest in Maine Electric Power., whichhas a major transmission interconnection in the state.

Susan Parker

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