Northeast Utilities and NStar Make $4 Billion Merger Deal

October 21, 2010 - Northeast Utilities, the owner ofPublic Service Company of New Hampshire, will purchase NStar for $4.17 Billion in a deal that both companies describe as a “merger.” If approved by federal and state regulators as well as shareholders, the new company will be New England’s largest utility with a total of 3.5 million electric and gas customers in New Hampshire, Massachusetts and Connecticut. The merged company will have a total enterprise value of $17.5 Billion, according to a joint statement.

The announcement earlier this week came as a complete surprise to nearly everyone, including the union representing many of the workers at PSNH.

“I received a call from PSNH’s former Human Resources Director Rich Chagnon Monday morning informing us that Northeast Utilities, the parent company of PSNH, was merging with NStar,” said Tom Ryan, IBEW Local #1837 Assistant Business Manager. “I was surprised - as I believe all PSNH employees were - as the news was kept extremely confidential.”

Industry observers say that the deal will help NU pay for large transmission projects to bring power from Northern New England and Canada to population centers in other parts of New England. Those analysts and the companies themselves predict future cost savings from the deal will be passed on to ratepayers. The companies expect the merger to take a year or less to complete.

Published reports indicated that the union representing workers at NStar – the Utility Workers of America Local 369 - was withholding comment while they studied the deal. That “wait and see” attitude was also reflected by Brother Ryan.

“At this point there is nothing that we can do or want to do about the merger,” Ryan said. “Besides, we have a contract until May 31, 2013, which will be honored.”

Approximately 460 members of IBEW Local #1837 work for PSNH, the largest electric utility in New Hampshire. The Company provides electricity for more than 475,000 homes and businesses.