Oct. 9 stockholder meetings on Nevada Power-Sierra Pacific merger

The Sierra Pacific stockholders' meeting will be held in Reno and the Nevada Power session will be held in Las Vegas.

The two utilities propose to sell 11 power plants as part of the merger, and use the proceeds to build new transmission and distribution facilities.

The utilities also are proposing a long-term freeze in prices for regulated transmission and distribution services. But starting in December 1999, electric generation will be deregulated and the market will set those prices.

Under the plan, any earnings by the merged utility that are over 12 percent on equity will be shared by investors and customers on a 50-50 basis.

Stockholders will own about 50 percent of the combined company, and both companies will be represented equally on the new utility's board of directors. The utilities will keep their existing identities in their respective service areas.

The holding company will be headquartered in Reno and the utility subsidiaries will be based in Las Vegas. Sierra Pacific's natural gas and water operations will continue to be based in Reno.

Michael Niggli, currently president and chief operating officer of Nevada Power, will be chairman and CEO of the holding company and chairman of its subsidiaries. Charles Lenzie, currently chairman and CEO of Nevada Power, will retire.

Malyn Malquist, currently chairman, president and CEO of Sierra Pacific Resources, will be president and chief operating officer of the holding company and president and CEO of Nevada Power and Sierra Pacific Power.

The merger is conditioned on approval of the state Public Utilities Commission, stockholders, the federal Energy Regulatory Commission and the federal Securities and Exchange Commission.

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