Connecticut utility regulators have formally approved a state settlement that would allow Hartford-based Northeast Utilities to buy Massachusetts energy company NStar for $4.9 billion.
Massachusetts regulators are still considering Northeast Utilities' proposed purchase of Boston-based NStar.
The Connecticut Public Utilities Regulatory Authority said in giving its final approval on Monday it believes a Connecticut rate cut and a rate freeze included in the deal are good for the state's consumers. The agency gave preliminary approval to the settlement last week.
Northeast Utilities has agreed to a $25 million rate credit for about 1.2 million customers of its subsidiary Connecticut Light and Power, the state's largest utility. The deal includes a separate rate freeze on distribution costs, $300 million for system improvements and other demands by Connecticut in exchange for approval.