According to the Times Union report, things aren't looking too good for Iberdrola, the Spanish utility company hoping to acquire Energy East and invest $20 billion in New York state wind farms.

Iberdrola's commitment to make a $2 billion investment in wind energy in the state was not addressed in the judge's opinion.Though regulators have yet to reach a final decision, they are under pressure to deny the deal unless Iberdrola agrees to a set of restrictions.

An administrative judge recommended against the merger after Iberdrola refused to follow Public Service Commission demands to increase ratepayer benefits and withdraw from the wind industry.

Sen. Charles Schumer expressed frustration with the ruling. "At a time when gas prices are $4 a gallon and we desperately need to develop alternative sources of energy, to place such severe restrictions on the world's leading wind power producer to develop wind power cries out for reversal," he said.