More information sought on utility merger

Monday, March 22, 1999 | 11:17 a.m.

As is routine with mergers, federal agencies are investigating whether the merger has antitrust implications.

The Justice Department's concerns center around the merger's effect on competition, the generation divestiture plan and transmission issues, the utilities said.

Steve Oldham, vice president of strategic development for Sierra Pacific, said the combined utility would sell its generating plants to multiple parties, kick-starting competition. And it would advance competition by upgrading its transmission system, which will make it easier to import power from other states. Oldham said the Justice Department wants to see more details on exactly how the combined company will achieve these goals.

The merger also needs approval of the Federal Energy Regulatory Commission, and Oldham said he's confident of FERC approval since it has not ordered a hearing on the merger.

The utilities still expect the merger to be completed by this year's second quarter.

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