NU NStar Merger To Initially Cost Us and Shareholders $439 Million

March 19, 2012
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According to HartfordBusiness.com, there are initial costs and long term savings for customers and shareholders of NU in its merger with NStar:

“The shareholders and ratepayers of Hartford-based Northeast Utilities will pay more than $439 million over the next several years to secure Connecticut and Massachusetts regulatory approval for the proposed merger with NStar,” wrote reporter Brad Kane.

“NU shareholders are on the hook for at least $139 million that can’t be passed onto customers while Connecticut ratepayers will shell out $300 million to improve the state’s energy infrastructure and Massachusetts ratepayers will suffer the costs of buying power from more expensive sources of generation.

“Despite the high cost of winning state regulatory approval, the companies and their analysts still see the merger as a long-term positive, producing $784 million in net savings over 10 years and creating a dominant company through the marriage of NStar’s strong cash flow with NU’s long slate of improvement projects.”

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