“Northeast Utlilities announcement to buy NStar for a whopping $4.3 billion is a further sign of consolidation that is happening in the U.S. utility industry. A main driver for this merger is reduction of overlapping cost structures. Providing energy services is increasingly a commodity business yet the twist is that utilities have monopolistic power. This power, and the ability to set price, is only countered by strong state public utility commissions. Its role is to make sure consumers receive dependable power at a fair price.

“The announced merger of Northeast and NStar could provide consumers with cost savings, but it will depend on the strength and ability of public utility commissions to advocate for rate paying consumers.”

Contact Mark Williams, 617-358-2789, williams@bu.edu

Hylton:  “As defendants become better acquainted with actual practice, the FTC may find that it prefers to make further changes down the road.”

Salinger:  “What remains to be seen is whether the courts will accept the less structured approach.”

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu, or Michael Salinger, 617-353-4408, salinger@bu.edu