Conn. Regulators Set Hearing For NU-NStar Deal

Connecticut regulators have scheduled a hearing on the state’s proposed agreement approving Northeast Utilities’ $4.9 billion purchase of a Massachusetts energy company.

The Connecticut Public Utilities Regulatory Authority has set a hearing for Friday to review the settlement agreement announced March 13.

Northeast Utilities agreed to a $25 million rate credit for customers, a separate rate freeze on distribution costs, $300 million for system improvements and other demands by Connecticut in exchange for state approval of the utility’s proposal to buy Boston-based NStar.

Massachusetts also is considering NU’s purchase of NStar. The utilities agreed to buy more than a quarter of the power produced by the long-planned Cape Wind offshore wind farm as a condition of the deal.

The hearing will be at the offices of the Public Utilities Regulatory Authority in New Britain.