Brief: Utilities see clarification of merger order

In a motion for clarification filed with the Public Utilities Commission of Nevada last week, the two companies asked for an explanation of how they can recover goodwill from the sale of their power plants. The order, they said, says the companies can recover goodwill from merger-related savings, but is unclear as to whether they can pursue goodwill in competitive or noncompetitive services.

The motion also asks for clarification on when the merger would be formally approved. As a condition of the merger, the utilities are required to sell their power plants and the companies want to know if the merger would be granted when a divestiture plan is filed or after the issue is ruled upon.

Part of the process involves submitting applications for "stranded costs," expenses they would not be able to recover under the restructured competitive utility industry, and the companies want to know if the merger would be approved after that application is submitted.

Nevada Power officials say clarifications of the issues are important to decisions on how the companies plan to proceed with their merger.

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