Sierra Pacific’s Niggli predicts bright future

Thursday, Nov. 18, 1999 | 11:35 a.m.

The company will focus on completing its proposed $3.1 billion buyout of Portland General Electric over the next year, said Michael Niggli, chief executive officer and chairman.

The company's long-term business strategy calls for expanding regionally in the area bounded by the Rocky Mountains, Pacific Ocean, Canada and Mexico, he added Wednesday.

In response to suggestions by Southwest Gas Corp. officials that Sierra Pacific might sell its natural gas distribution system in Northern Nevada, Niggli said, "We're an electric, gas and water company and at this point in time, that's still our strategy."

The acquisition of Portland General would add to profits in the first year, Niggli said. He declined to say how much, because the company doesn't forecast earnings.

He also predicted annual cost savings in the $30 million to $42 million range as a result of the merger.

"In the longer term, we can continue to keep our costs down better with a larger system than we have in the past," he said.

Niggli also said he wasn't surprised about the decline in the company's stock price since the merger announcement on Nov. 8.

"This is exactly what happened with the Nevada Power-Sierra Pacific deal," he said.

"We believe this will be a short-term phenomena, and our stock will gain strength over time," he said.