Nevada Regulators Approve Wwp, Sierra Pacific Merger

Nevada regulators Friday narrowly approved the merger of the Washington Water Power Co. and Sierra Pacific Resources.

The 3-2 vote came after changes in proposed language the two utilities said would have been fatal to a transaction almost two years in the making.

Karl Walquist, a Sierra Pacific spokesman, said clarifications made Friday appeared to resolve some of the problems, but company Chairman Walter Higgins was reserving comment until final copies of the Nevada Public Service Commission order are delivered Monday.

“There were several wording changes that were made,” he said.

WWP representatives were returning to Spokane from Carson City Friday evening and were unavailable for comment.

Spokesman Pat Lynch said the Spokane utility was also withholding comment until the order was in hand.

The commission issued a proposed order September 28 that provoked a strong response from the companies Wednesday.

As drafted, they said, the order threatened three fundamental principles of the merger; that ratepayers and shareholders be no worse off, and that resources dedicated to serving customers in each utility’s territory not be redeployed.

“Joint applicants cannot and will not consummate the merger unless the proposed order is modified by deleting the objectionable provisions,” they said, or by adopting substitute language submitted by the companies.

The proposed order prompted Washington’s consumer advocate to request that the state Utility and Transportation Commission stay its approval of the merger.

The Nevada order contained “several surprising and objectionable provisions,” the request said.

If the modified order is acceptable, approval of the deal by California and federal regulators would be the last hurdles to consummation of a deal that will create a utility with about $1.3 billion in annual revenues.

, DataTimes