State Offers Approval Of Wwp Deal

Washington Tuesday became the last state to approve the proposed merger of Washington Water Power Co. and Sierra Pacific Resources.

But Utilities and Transportation Commission members continued to express concerns about the transaction even as they lifted a stay imposed on the deal in October.

The Washington order became anti-climactic last week, when the Federal Energy Regulatory Commission surprised the two companies by refusing to give its consent without a lengthy hearing process.

The merger, which would create a new company called Altus, was announced in June 1994.

FERC will hold a pre-hearing conference next Wednesday that will determine how rapidly the rest of the review goes forward.

WWP spokesman Pat Lynch said most company officials active in the merger process were in Washington, D.C., discussing their next move.

But he said the company was pleased with the action taken by regulators in Olympia, who had approved the merger in September only to back away when the Nevada Public Service Commission set conditions that could disadvantage Washington customers of WWP.

The Nevada commission had sought information on “single-system pricing,” which would charge all customers of the new, combined utility the same rate for electricity.

WWP had balked at the condition even though Nevada officials denied any intent to adopt the pricing system.

Rates charged by the Spokanebased company are far below Sierra’s. Blending the price would mean increases in Washington and Idaho.

There was also a dispute over how the benefits of a new powerline under construction by Sierra would be allocated.

The Washington commissioners said they remain “nervous” about allocation, and conditioned their assent to the merger on the understanding that Altus shareholders - not Washington ratepayers - absorb any harmful impacts of conflict on the issue between commissions.

, DataTimes