Big Utilities Agree To Merge Operations

Colorado’s electric utility announced plans Wednesday to merge with a nearby power company in a deal expected to push more newly cost-conscious electric companies into mergers.

Public Service Co. of Colorado is paying about $1.26 billion worth of stock to merge with Southwestern Public Service Co. of Texas. The combined company would serve customers in Colorado, Texas, New Mexico, Wyoming, Oklahoma and Kansas.

The jobs of 550 to 600 workers, or 8 percent of the combined work force of 7,000, are expected to be eliminated to cut costs.

“Utility companies across the country are trying to reduce costs so prices are attractive …” Public Service Colorado Chairman Del Hock said at a news conference. “We have concluded that bigger is better in an increasingly competitive marketplace.”