Nevada Commission Delays Hearing On Utilities’ Merger

An angry Nevada Public Service Commission this week spiked a scheduled hearing on the proposed Washington Water Power Co.-Sierra Pacific Resources merger.

Commissioner Judy Sheldrew said postponement of the Aug. 7 hearing was provoked because conditions that might be imposed on the deal, which has been pending for more than a year, were disclosed prematurely.

“Since the commission and many of the other parties have not had an opportunity to analyze or respond to the contents of the press release, we must allow additional time for all parties to review and comment,” she said.

The Washington Utilities and Transportation Commission will hold its own hearing on the merger at 6 p.m. Tuesday in Room B-103 of the Farm Credit Building.

Sierra Pacific Resources spokesman Bob Sagan said the controversial news release came early Thursday from the Nevada Office of Consumer Advocate.

The release and accompanying news conference attracted widespread media attention in Nevada, he said.

But the commission, Sagan said, had not yet made a point-by-point review of the conditions, also called stipulations. Two previous versions had been returned to commission staff, the company and consumer advocate for reworking, he noted.

“Not everything was exactly hammered out,” Sagan said.

The commissioners reacted to the press release and news conference within hours.

“The commission wants to establish that ‘By God, We’re in charge here,”’ Sagan said.

Sheldrew also said the latest version was only a draft. Additional consumer safeguards may be needed, she said.

She added that commissioners in the other states reviewing the deal are concerned about the split of $450 million in savings the combined utilities expect to realize in the next 10 years.

Terms in all the states vary, with a proposed rate freeze in Nevada to run one year less than those on the table in Washington and Idaho, where they will expire Dec. 31, 2000.

Montana and Oregon have approved the merger.

Besides the stipulations pending in Nevada, Washington and Idaho, WWP Rates Manager Tom Dukich said negotiators are close to terms in California.

The deal would create Resources West Energy, which would sell electricity, natural gas and water in a barbell-shaped area anchored by Spokane and Reno.

Sagan and Dukich said the timetable for state action on the stipulations should not slip past mid-September as a result of the postponement in Nevada.

, DataTimes