* But most of the explanation remains unavailable to the public

Representatives speaking on behalf of Puget Sound Energy said the Attorney General’s Public Counsel undervalued a recent settlement between PSE, the Macquarie Consortium and interested businesses, and overstated risks associated with PSE and Macquarie’s proposed merger.

Testifying before the Washington Utility and Transportation Commission (WUTC), PSE representatives rejected the public counsel’s assertion that the proposed $7.4 billion merger is an “inferior choice.” They testified that the proposed transaction relies on the deep pockets of the Australia-based investment group, according to a filing with the WUTC Tuesday.

The testimony included a three-item summary explaining why the merger was a “superior choice” for customers, but two of the items were mostly blacked out.

The publicly released testimony included several blacked-out lines and sections that were deemed confidential, including the majority of a two-page section explaining that the proposed transaction will improve PSE’s BBB- credit rating.

The rebuttal directly refutes an Aug. 5 filing from public counsel — the office representing residential and small business customers in utility rate cases. The office has remained opposed to the transaction throughout settlement discussions. Public Counsel Simon ffitch maintains that the merger exposes customers to too much financial risk.

PSE Executive Vice President Eric Markell said several pieces of information have been confidential since the first filings of the case to the WUTC in December. He said some of the material may be publicized after the merger is approved.

Ffitch agreed that within business transactions, some information should remain confidential, but said he wishes the public had access to more.

“It’s unfortunate that the public is being screened from some of this critical information,” ffitch said.

* For the full story, see today’s print edition of the Skagit Valley Herald or go online to the E-edition, available with subscription.