(HARTFORD, CT) – Governor Dannel P. Malloy, Attorney General George Jepsen, and Consumer Counsel Elin Swanson Katz today announced an agreement with Northeast Utilities and Boston-based NSTAR that guarantees substantial benefits to Connecticut residents from the proposed merger of the two utility companies.

The agreement, reached after nearly a month of negotiations, provides at least $120 million in benefits to Connecticut in rate relief, investment in the state’s energy future, and preservation of 1,000 acres of open space.  Other benefits include: a two and half year distribution rate freeze; a commitment to keep NU headquarters in Hartford for at least seven years; protection of Connecticut jobs; the opportunity to preserve as much as 8,500 additional acres of open space; and a $300 million investment in infrastructure reliability improvements.

The settlement agreement will be filed today with the state Public Utilities Regulatory Authority (PURA), where review of the proposed merger is now pending. Both the settlement agreement and proposed merger will need state regulatory approval on or before April 2, 2012, and the merger would have to be completed by the companies, for the settlement to become binding.

“After everything our residents have been through over the past year, weathering storms and enduring long outages of utility service, we knew that we had a tremendous opportunity to negotiate an agreement that would really benefit the people of Connecticut,” said Governor Malloy.  “The agreement we’re announcing today does many things, but most importantly, it will ensure that distribution rates for our consumers will stay flat for two and a half years, providing some much needed relief for residents.” 

Attorney General Jepsen and Consumer Counsel Swanson Katz, who pushed the PURA to review the proposed merger and helped to negotiate the agreement, were pleased by the result.

“Protecting Connecticut and the interests of its citizens were our first concerns,” Attorney General Jepsen said. “Like our neighbors in Massachusetts, we will know up front what this merger will mean for our state.”

Consumer Counsel Swanson Katz said, “Connecticut residents are entitled to share in the benefits of any merger and this agreement does that.  They will see a rate credit on their bill and other benefits up front, and more down the road as the savings anticipated from the merger are realized.”

Among the provisions, the agreement provides:

• Creation of a $15 million fund for energy efficiency and related initiatives. NU will work with the state Department of Energy and Environmental Protection to develop a targeted plan to advance Connecticut’s interests in expanded energy efficiency programs, including programs available to low-income residents and small businesses; electric vehicles; microgrids; renewable energy projects; and increasing the number of qualified minority contractors providing energy efficiency services. This investment will be paid solely by NU shareholders.

Distribution rate freeze until December, 2014:

Corporate presence:

• NU will maintain a principal Board and Executive offices, functions and staff in Hartford;
• NU will maintain the headquarters of CL&P, Yankee Gas Services Company, the transmission business and NU Call Center operations in Connecticut;
• NU will maintain its charitable donations and civic commitments to Connecticut at levels consistent with the past five years.

• The aggregate number of line workers in both Connecticut and Massachusetts will not be reduced.
• CL&P will work with local community colleges in Connecticut to develop a line worker apprenticeship program.
• Any reduction to other staff in Connecticut will be made “on a fair and equitable basis and will not be disproportionate to other jurisdictions” in which the merged company does business.  The companies expect to make all reductions through normal attrition and not through layoffs.

Open Space and Land Preservation:

System improvements:

Contacts:

Governor: Andrew Doba – andrew.doba@ct.gov – (860) 524-7308 or (860) 770-8090

Attorney General: Susan E. Kinsman – susan.kinsman@ct.gov – 860-808-5324 or 860-478-9581

OCC: Consumer Counsel Elin Katz – elin.katz@ct.gov – 860-827-2910