FERC yesterday readily approved the $4 billion merger of twowestern utilities-Sierra Pacific Power and Nevada Power. This was”relatively easy” compared to other deals that have come before theCommission, said Commissioner Vicky Bailey.

The merger partners’ competitive analysis showed there were “nomerger-induced increases in concentration” above the levelestablished by FERC in its merger policy statement. In addition,the planned divestiture of the partners’ merger assets, which wasordered by the Nevada Public Service Commission (PSC) as acondition to approving the merger, “[was] sufficient to ensure thatthe merger would not adversely affect competition, FERC staff said.

In issuing its order, Commissioner Linda Breathitt said FERCtook “careful note” not to “preempt or interfere” with the NevadaPSC’s independent proceeding on the combination of the twoutilities.

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