Regulators Reject Proposed Utility Deal

Federal regulators Wednesday rejected a proposed $6 billion merger of the two largest electric utilities in Minnesota and Wisconsin, maintaining the new company would wield too much control over the electricity market.

The Federal Energy Regulatory Commission said it would reconsider the merger of Northern States Power Co., and the Wisconsin Electric Power Co., if the two address the power market problems.

The merger would create the nation’s tenth-largest electric utility under the name of Primergy.

The merger, announced two years ago, has been awaiting approval by federal and state regulators. The commission’s decision reversed a federal administrative law judge’s tentative approval last year