Southwest Gas Corp. merger talks remain stalled

David Strow

Wednesday, Aug. 25, 1999 | 10:42 a.m.

Arizona's top utilities regulator isn't prepared to accept a compromise proposed by Southwest Gas Corp. that will allow hearings to move forward on the Las Vegas company's merger with ONEOK Inc.

Jerry Porter, spokesman for Arizona Corporation Commission Chairman Carl Kunasek, said Kunasek still wants ONEOK rival Southern Union Co. to participate actively in the hearings. Southwest has opposed Kunasek's request to allow Southern Union intervention status in the case, suggesting instead that the ACC submit a list of written questions to Southern Union.

Published reports Tuesday and today indicated Kunasek was willing to accept that compromise.

But written questions "are rather sterile ... there's no give and take, no cross examination, and we think that's important," Porter said. "We need some forum to allow Southern Union to present information and respond to inquiries by the commissioners.

"We aren't satisfied there's a process in place that would allow it to go forward."

Kunasek has expressed concerns over ONEOK's suitability as a merger partner for Southwest in the wake of federal and state investigations of Arizona Commissioner Jim Irvin and former ACC executive secretary Jack Rose. The men were accused by Southern Union in a federal racketeering lawsuit of improperly attempting to influence regulators in other states in favor of ONEOK. Kunasek believes Southern Union's intervention is necessary to provide more information on the deal.

Arizona regulators are scheduled to hold hearings on the Southwest merger starting Sept. 1, but Kunasek has indicated he will try to delay those hearings if a compromise can't be reached on Southern Union's participation. Arizona's approval is required for the merger to be completed.