SALEN, Ore. - The Oregon Public Utility Commission on Monday formally approved Reno-based Sierra Pacific Resources' $3.1 billion acquisition of Portland General Electric.
In approving the purchase from Houston-based Enron Corp., the commission concluded the acquisition is in the public interest, in line with state law.
''We approved this based on guarantees that rates will not increase as a result and customer service will not suffer, and that prior PGE investments in renewable resources will be maintained,'' Commissioner Roger Hamilton said.
Sierra also needs approval from the Federal Energy Regulatory Commission.
The Oregon commission order freezes distribution line, transmission line and customer service rates for six years. But the decision doesn't affect the utilities' ability to seek rate adjustments because of changes in the price of fuel used in generation or wholesale power rates.
Customers will get a $95 million credit toward their bills over seven years under the order. Those credits are in addition to the $80 million credit that Enron owes Portland General Electric customers.
In addition, the agreement details 30 protections guaranteeing service quality and reliability. Sierra, the parent company of Las Vegas-based Nevada Power Co. and Reno-based Sierra Pacific Power Co., also agreed to support Oregon's electric deregulation legislation.
Portland General serves 700,000 customers including residents of Portland and Salem.
