Nevada Power merger Ok'd by FERC

Nevada Power Co.'s bid to merge with Sierra Pacific Resources Inc. took another step toward completion on Wednesday when a federal agency gave its approval to the deal.

The Federal Energy Regulatory Commission, which monitors the interstate transmission of electrical power, gave approval for what the companies say is a $4 billion merger.

"We find that the applicants' proposed merger and mitigation commitments are consistent with the public interest," a statement from FERC said.

But even though the agency has approved the merger, the Public Utilities Commission of Nevada plans to keep its plans to conduct a May 10 hearing on whether the utilities violated the terms of the PUC's conditional merger approval.

Questions were raised by commissioners at a meeting earlier this week on tariffs filed with FERC regarding rates to be charged by power plants when the utilities sell them to new owners. Although FERC has already approved the merger, the show-cause hearing will be conducted as planned.

With FERC and PUC merger approvals completed, the utilities next must get the green light from the Securities and Exchange Commission and the Justice Department before the merger can be completed.

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