Merger To Create Energy Powerhouse

The state’s largest investor-owned electric utility and the state’s largest gas company have agreed to merge, creating what would be the largest combination energy company in the Northwest.

Puget Sound Power & Light and Washington Energy Co., the parent of Washington Natural Gas, said Wednesday the merger will save $370 million over the next 10 years by creating a single provider of multiple forms of energy and eliminating overlapping service areas.

Puget Power serves 830,000 electricity customers in nine counties in Western Washington. Washington Natural Gas, the largest gas-distribution company in the Pacific Northwest, serves 468,000 customers in five counties in Western Washington.

“We are convinced that the strategic concept we are following by uniting our electric and natural gas businesses will be seen as a model in the years ahead,” said Richard Sonstelie, Puget Power president and chief executive officer.