The state Public Service Commission still hasn’t approved the proposed purchase of the utility Energy East by Iberdrola, a Spanish-based multinational corporation, but PSC staff, previously opposed, is now said to be at least open to it. That is welcome news, regardless of whether it’s because PSC staff has actually seen the light or just doesn’t want to be blamed for “losing Iberdrola” and all future investment by it in New York — which the company threatens will happen if the deal isn’t approved.

Iberdrola isn’t just one of the the world’s biggest suppliers of energy, it is the leading supplier of wind energy. And New York state has an official goal of getting 25 of its energy from renewable sources such as wind power by 2013. That is one of the reasons General Electric chose to locate its renewables headquarters and wind operations, the fastest-growing part of its entire business, in Schenectady, and just announced that it will spend $100 million to build three wind farms in upstate New York. Presumably, it also has something to do with Iberdrola’s wanting to come here and invest $2 billion over the next five years, building and operating wind turbines.

But rather than welcome them with open arms, the PSC staff gave them the stiff-arm. If you want to buy Energy East, you will have to give up your current half-interest in a wind farm in northern New York, it told them, and pledge not to build any other wind farms in the state. And those $200 million in “benefits” you promised to your new customers, including a 4 percent rate reduction? Not good enough. Make it at least $600 million, it told them.

The forced divestiture and forswearing of wind farms stems from a policy the PSC adopted in 1996 that says a company that transmits and delivers power can’t also produce it. The idea was to reduce rates and improve service by introducing competition into the utility system, which until then had been a regulated monopoly.

Deregulation hasn’t been a total failure, but it hasn’t been a huge success, either. The flexibility it was supposed to bring for consumers has brought mostly confusion, and rates remain high. The energy industry is also rapidly changing, with everyone looking to develop alternative sources, use new technologies and be more efficient. So there’s no need to rigidly adhere to rules put forth by the PSC 12 years ago, especially when there’s a chance of getting a successful, respected company like Iberdrola to make such a major investment here.

PSC staff has indicated that, while it still has problems with Iberdrola owning windmills, it is willing to compromise. That’s fine, as long as it’s a compromise Iberdrola can live with.