Idaho Approves Sierra Pacific Merger

The Idaho Public Utilities Commission (PUC) has approved the merger of Washington Water Power Co. with Sierra Pacific Power Co. and its corporate parent, Sierra Pacific Resources. Pursuant to the terms of the merger agreement, the surviving entity will become Resources West Energy Corp., a Nevada corporation authorized to conduct business in Nevada, Washington, Oregon, California, and Idaho.The utilities estimate that the merger will save ratepayers $514 million over a 10-year period, with nearly half the savings attributable to reductions and alterations in workforce. Purchasing economies in the gas market and reduced capacity requirements related to differing peak periods among the companies will account for most of the balance of the projected savings. The companies also allege that the low cost but static growth forecast for Washington Water Power, coupled with the strategic location to new markets and the actual growth in existing markets experienced by Sierra Pacific, will give the merged company an enhanced position in the "increasingly competitive" marketplace.