Editorial: Require fairness in merger’s costs

Sunday, May 7, 2000 | 8:28 a.m.

Sierra Pacific Resources, the parent company of Nevada Power, announced in November that it wants to acquire Portland General Electric in a $3.1 billion deal. Nevada state utility regulators, though, have a genuine concern about who will absorb a $1.1 billion premium, which Sierra Pacific Resources is willing to pay, to acquire Portland General Electric.

Company officials have assured Oregon utility regulators that Portland General Electric customers will not see rate increases due to merger costs. But the Nevada Public Utilities Commission is worried that since similar assurances haven't been made here, Nevada's retail ratepayers may be left -- in the commission's words -- "holding the bag." So it is encouraging that Nevada regulators are asking the Federal Energy Regulatory Commission, which has final approval on the merger, to investigate this matter. Nevada's ratepayers shouldn't have to shoulder the costs of a huge acquisition premium.

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