Utility Deal Gains Ok, Faces Delay Wutc Plans To Reassess Wwp-Sierra Pacific Merger

The good news for Washington Water Power Co. and Sierra Pacific Resources was approval Wednesday of their proposed merger by the California Public Utilities Commission.

The bad news was a decision Tuesday by the Washington Utilities and Transportation Commission to shelve temporarily an earlier ruling in favor of the deal.

But officials of the utilities were downplaying the impact of the delay, which had been sought by the Washington commission’s staff and state attorneys representing the public.

“Taking a little more time to be sure we can move forward in a positive way is well worth the wait,” said Sierra Chairman Walter Higgins.

The commission staff and public counsel, which had helped negotiate conditions for approval of the merger, had second thoughts when Nevada regulators tinkered with some of the wording in an agreement worked out by their staff.

Regulators in all six of the states served by the two utilities have tried to assure that customers will share equally an estimated $450 million in savings over the next 10 years.

Rate freezes were imposed in every state but Montana, where most of the customers affected are WWP employees.

Both utilities serve the South Lake Tahoe area of California, the only state where they overlap.

As part of the agreement there, electricity rates will be cut 7.3 percent. Electricity and natural gas rates will then be frozen until the year 2000.

Final approval of the merger lies with the Federal Energy Regulatory Commission, which is expected to act shortly after the Washington commission completes its reassessment.

“We must have the support and cooperation of all the states,” said WWP Chairman Paul Redmond. “We’ll do what we can to foster a common understanding among all concerned.”

, DataTimes