Utility chief returns to head Nevada company

Thursday, Aug. 10, 2000 | 11:06 a.m.

Before Walter Higgins left Sierra Pacific Resources for a job as the head of Atlanta Gas Light in 1998, he laid the groundwork for the restructuring of the electric industry in Nevada.

Higgins worked with lawmakers to draft the legislation that would lead to the deregulation of the industry.

Now, Higgins returns as Sierra Pacific chairman and chief executive to face a new challenge -- guiding the state's largest electrical utility into the deregulated environment. His appointment was announced Wednesday.

Reno-based Sierra Pacific has merged with Nevada Power since Higgins left in 1998 and members of the company's board of directors now feel he will better serve the company by being based in Las Vegas -- the metro area with its largest concentration of customers.

But the company has no plans to relocate corporate headquarters to Las Vegas from Reno.

Higgins replaces Michael Niggli, who resigned in July. Experts say Niggli was forced out by the board -- Niggli and Sierra Pacific won't say why he left.

Reaction to the appointment of Higgins has been favorable from consumers, investors and regulators.

"I think the board made a good choice," said Don Soderberg, chairman of the Public Utilities Commission of Nevada. "From working with Walt in the past, I know him to be very forward-thinking and practical. I think it's a good step for the company."

"I've always been impressed with Walt's skill as a manager," said Consumer Advocate Tim Hay, who worked closely with him as general counsel of the PUC from 1994 to 1996, and as a commissioner from 1996 to 1998. "I can't think of anyone who would be better qualified to take the company through the next few years."

"We welcome Walt Higgins back to Nevada," said Joyce Newman, president of the Utility Shareholders Association of Nevada. "His leadership as well as his familiarity with Nevada's unique qualities and circumstances will allow him to hit the ground running at a time when the electric industry is changing almost daily.

"We expect Sierra Pacific Resources' shareholders will be pleased by the appointment too. We think they'll welcome Mr. Higgins' strong leadership style," said Newman, whose organization represents thousands of investors.

"During his tenure at Sierra Pacific, Walt established himself as a strong, well respected leader with the PUC, our major customers, public officials, and employees," said James R. Donnelley, acting chairman of the board of directors of Sierra Pacific Resources. "He is the best person to guide our company through the exciting and challenging times that lie ahead as the utility industry undergoes significant change."

In addition to sorting through the restructuring, which is expected to begin in the fall with large customers being allowed to choose utility service from among competitors, Higgins will guide Sierra Pacific's $3.1 billion acquisition of Portland General Electric Co. in Oregon from Enron Corp. Higgins worked for 14 years at Portland General Electric, leaving there in 1991 as a senior vice president.

In the meantime, Higgins, who takes his new post immediately and is meeting with Las Vegas employees today, will take over after the company reached a settlement agreement with the PUC, allowing it to collect purchased power and fuel costs from ratepayers. The company has announced two rate increases in the last month and could announce another within weeks since the company is allowed to adjust rates monthly to account for skyrocketing fuel costs.

The company recently reported $20.2 million in losses in its last quarter.

Today, Sierra Pacific's stock was up 12 cents to $16.62.