In the meantime, company officials are trying to convince stakeholders that the merger will benefit both shareholders and customers and prepare themselves for necessary regulatory approvals. FPL's chief executive James Broadhead has said the merger will take place as scheduled, but the Securities and Exchange Commission, the Federal Energy Regulatory Commission, as well as regulators in five states must still approve the deal. FPL needs to convince federal regulators that the merger will not hinder competition and city and state regulators that the deal is in the best interest of customers.
Most analysts agree that the benefits of the merger greatly outweigh the costs.
Broadhead has already promised that ratepayers will experience lower prices, but no percentages have been worked out quite yet. Davis told FERC that he is considering filing a lawsuit against the agency if his request is ignored. Davis predicted an economic tailspin and a ratepayer revolt if FERC does not lower rates when the market is more competitive with plant construction. Davis laid most of the blame for the California power market's failure on his predecessor, Governor Pete Wilson, and with federal regulators. FERC chairman James Hoecker repeatedly thanked Davis for attending the hearing, but made no assurances.