Wwp, Sierra Ok Change To Speed Merger Approval New Language Provides Safeguards For Washington Consumers

In a final push to complete a proposed merger before the end of the year, Washington Water Power Co. and Sierra Pacific Resources have accepted slightly more risk that a pie six states across can be sliced evenly.

The companies Thursday agreed to language written by Washington officials that will increase safeguards protecting the split of merger benefits to be shared by Washington ratepayers.

The staff of the Utilities and Transportation Commission and attorney representing consumers had convinced the commissioners to shelve their earlier approval of the merger based on concerns raised by regulatory action in Nevada.

Officials in Idaho, Montana, Oregon and California have also approved the merger, which is expected to save a total $450 million over 10 years.

The Nevada order required the companies to provide information on so-called single-system pricing, and use of a new transmission line in the state.

Washington staff said that, despite assurances to the contrary, pricing information could compromise rate deliberations by Nevada regulators aware of the different rates paid in Washington and those paid in their state.

And the benefits of the transmission line might not be properly allocated between ratepayers in the two states, they said.

Staff members suggested new language in the Washington order approving the merger that would prevent any harm to state residents.

Thursday, WWP and Sierra Pacific told the utilities commission they would accept the additional language.

The goal, said rate manager Tom Dukich, is quick final action by the states so the Federal Energy Regulatory Commission can vote on the deal at its December 13 meeting - its last for 1995.

, DataTimes