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Electric utilities

Proposed Merger of Washington Water Power and Sierra Pacific Resources Hits a Roadblock

Strategic Insights

— 1 min read

The proposed merger between The Washington Water Power Company (WWP) and Sierra Pacific Resources (SRP) has been put on hold due to a recent order issued by the Washington Utilities and Transportation Commission (WUTC). The WUTC's action came in response to a joint petition filed by the Commission staff and public counsel section of the Washington attorney general's office to stay the effectiveness of the WUTC's Sept. 28 order approving the merger. The Commission seeks to allow "adequate time for Commission Staff and Public Counsel to review and evaluate the final order of the Nevada Public Service Commission."

Key Takeaways:

  • The proposed merger between WWP and SRP may be delayed due to the WUTC's action.
  • The Commission seeks to review and evaluate the final order of the Nevada Public Service Commission to ensure that all concerns are addressed.
  • Regulators in Idaho, Oregon, and Montana have previously approved the merger, while the California Public Utilities Commission is scheduled to issue its order later today.
  • The Federal Energy Regulatory Commission is expected to render its decision shortly after all state issues have been resolved.
  • Once approved, the new company, Altus, will begin doing business on the New York Stock Exchange and the Pacific Stock Exchange under the ticker symbol ATU.
  • Altus will serve 533,000 electric customers, 292,000 natural gas customers, and 60,000 water customers in a six-state area of operations.
  • Combined revenues of the two companies totaled $1.3 billion in 1994, with assets of $3.6 billion and total net income available for common stock of $121 million.

Statistics:

  • 533,000 electric customers will be served by Altus.
  • 292,000 natural gas customers will be served by Altus.
  • 60,000 water customers will be served by Altus.
  • Combined revenues of the two companies: $1.3 billion (1994).
  • Total assets of the two companies: $3.6 billion.
  • Total net income available for common stock of the two companies: $121 million (1994).
  • Number of states in the six-state area of operations: 6.

Sources:

  • Washington Utilities and Transportation Commission (WUTC) order, Oct. 18, 1995.
  • Joint petition filed by the Commission staff and public counsel section of the Washington attorney general's office, Sept. 29, 1995.
  • Joint statement by Paul Redmond, chairman, president, and CEO of WWP, and Walt Higgins, chairman, president, and CEO of SRP.
  • Press release issued by The Washington Water Power Company and Sierra Pacific Resources.

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