In an attempt to win approval for their merger from regulatorsin Washington State, ScottishPower and PacifiCorp announced theyhave agreed to give retail electric customers in the state a mergercredit directly payable on customers’ bills of $3 million per yearfor four years beginning in January 2001. The deal is similar tothe those already offered to PacifiCorp customers in Oregon andIdaho. The merger credit, which equates to a reduction of 1.7% offcustomers’ bills, includes Washington’s share of the $10 millioncost savings that ScottishPower had previously committed to passthrough to customers in the state. The merger partners will be ableto offset the $3 million merger credit in each of the four years tothe extent that the cost reductions are reflected in rates. Theproposed marriage requires the approval of regulators in the fivewestern states served by PacifiCorp – Washington, California, Utah,Idaho, Wyoming and Oregon. All have either approved the transactionor have recommended it for approval by their respectivecommissions. It also has passed muster at FERC and the Securitiesand Exchange Commission, but still awaits clearance by the NuclearRegulatory Commission.

The AES Corporation yesterday reported it has received a keyexemption from the Securities and Exchange Commission (SEC), whichpaves the way for it to close its merger with CILCORP Inc. by theend of the fourth quarter. The SEC ruling provides AES with anexemption from provisions of the Public Utility Holding Company(PUHCA) of 1935, enabling it to maintain its existing ownershiplevels in qualifying facility power plants that it operates. Thiswas the final regulatory approval needed for AES to complete itsacquisition of Peoria, IL-based CILCORP, whose principal utility isCentral Illinois Light Co. The proposed transaction already has wonapprovals from FERC, the Illinois Commerce Commission and CILCORPshareholders, as well as clearing antitrust review by the FederalTrade Commission.

©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.