State Oks Wwp Deal With Sierra Merger Still Needs Approval From 2 States, Federal Agency

Washington regulators Thursday approved the proposed merger of Washington Water Power Co. and Sierra Pacific Resources.

The consent of the Utilities and Transportation Commission is the biggest hurdle yet cleared by the two utilities in their bid to create a new company - Resources West Energy Corp. - spanning six states.

Regulators in Idaho, Montana and Oregon have already approved the deal, which was first announced in June 1994.

Jeffrey Scholman, an electric policies specialist with the UTC, said the commissioners made no changes in an agreement negotiated in May between staff members and WWP officials.

That pact called for a five-year rate freeze and increased conservation and energy-education programs.

Scholman said three footnotes were added clarifying language that prevents one Resources West operation - WWP or Sierra from raising rates if the other suffers a bond downgrade or other financial setback.

WWP Rates Manager Tom Dukich said the Spokane utility was happy with the Washington order, and the way the merger had been handled by state officials.

“It benefits everybody to be regulated that way,” he said.

Dukich added that WWP and Sierra officials in Reno were awaiting a draft order from the Nevada Public Service Commission late Thursday.

Comments are due by next Tuesday, he said, and action could be completed there October 6.

California regulators are expected to issue their order October 18, Dukich said.

The Federal Energy Regulatory Commission must also give its consent.

Dukich said the federal authorities may issue a ruling after Nevada acts, or wait for California to wrap up state deliberations.

The combined utilities will serve 533,000 electricity customers, 292,000 natural gas customers, and 66,000 water customers.

In 1994, their combined revenues were $1.3 billion, and assets were $3.6 billion.

, DataTimes