Six Northwest utilities may form joint venture for power transmission

Monday, May 1, 2000 | 5:03 a.m.

Steve Becker, a spokesman for Spokane-based Avista Corp., confirmed Monday that his company had signed a memorandum of understanding to study the question with five other companies: Puget Sound Energy of Bellevue, Montana Power Co. in Butte, Mont., Portland (Ore.) General Electric Co, and two Nevada-based companies owned by Sierra Pacific Resources of Reno, Nev.

The Wall Street Journal, which first reported on the venture Monday, said the new company could manage power lines and substations in Washington, Oregon, Idaho, Montana, Wyoming and Nevada. The entire network was estimated to be worth $1.8 billion.

By combining the assets, the new company could offer power generators a cheaper, less confusing alternative for transmission than the six separate companies could.

The new company would not directly compete with the 15,000 miles of lines owned by the federal Bonneville Power Administration, the region's largest power marketing agency, Becker said. Instead, it would work with the BPA and other regional power providers to form a cohesive network.

A decision on whether the six companies should merge there assets, or use a different kind of business model, will be made by Oct. 15, Becker said.

The venture talks come as the Federal Energy Regulatory Commission continues to promote independent power transmission groups that would allow broader access to high-voltage power lines to encourage competition.