NU, NSTAR Expect Merger Savings Of $780M
Northeast Utilities and NSTAR say their merger could save customers $780 million over 10 years and reduce their total employee count by 350 with no big layoffs.
In a filing with the Massachusetts Department of Revenue, the utilities say they will save money by consolidating systems, improving their processes and reducing labor costs. Rather than lay off large numbers of employees, the companies say they will eliminate about 350 positions over five years through normal attrition and retirements.
Other savings will come from slimming down to a single auditing firm and board of trustees, fewer insurance carriers and consolidated systems.
Connecticut-based Northeast Utilities serves more than 2 million electric and natural gas customers in Connecticut, western Massachusetts and New Hampshire. NSTAR is based in Boston and has 1.1 million electric customers and 300,000 gas customers in Eastern and Central Massachusetts.
The utilities have said they plan to close their merger in the second half of 2011.
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