Editorial: Who will pick up the merger’s tab?

Tuesday, Sept. 19, 2000 | 9:50 a.m.

Nevada utility regulators voiced their concerns in May about a pending merger between Oregon's Portland General Electric and Nevada's Sierra Pacific Resources, which is the parent company of Nevada Power and Sierra Pacific Power. The Nevada Public Utilities Commission asked the Federal Energy Regulatory Commission to investigate who would absorb a $1.1 billion premium that Sierra Pacific Resources is willing to pay to acquire Portland General Electric. Warning lights went off in Nevada after Sierra Pacific Resources assured Oregon utility regulators that customers there wouldn't see rate increases due to merger costs, a promise that prompted Nevada regulators to worry that Nevada customers would be left "holding the bag."

Well, anxiety about the merger has crept even higher after Sierra Pacific Resources recently announced that not only would the company freeze the rates of Portland General Electric customers over the next six years, but that it also plans to provide $95 million in savings that would be credited to customers' accounts over seven years. As the Sun's Cy Ryan reported Monday, this development has upset Nevada Senate Minority Leader Dina Titus, D-Las Vegas, since Nevada customers at the same time are being hit with rate hikes. Federal regulators have yet to make a final decision on the merger, but this latest news doesn't offer much comfort.