Massachusetts regulators on April 4 approved the proposed merger between Northeast Utilities and (NYSE:NU) and NSTAR (NYSE:NST).
The decision came days after Connecticut regulators approved a settlement agreement relating to the transaction.
The Massachusetts Department of Public Utilities (DPU) said it approved two sets of merger settlement agreements based on benefits including a base distribution rate freeze and a one-time rate credit of $21m, for an overall savings of about $206m over the next 10 years. The credit and freeze takes effect immediately and residential, commercial and industrial customers of NSTAR’s NSTAR Electric, NSTAR Gas and Northeast Utilities subsidiary Western Massachusetts Electric Company will receive a one-time credit available beginning on their May bills, the DPU said.
Northeast Utilities and NSTAR said in February that they had reached separate merger-related agreements with the Massachusetts Department of Energy Resources (DOER) and state Attorney General that involve a rate credit for customers as well as buying power from Cape Wind Associates’ planned Cape Wind offshore wind farm. Energy Management owns Cape Wind.