Pacific Power to be sold
Public hearing on proposed $9.4 billion sale Jan. 23 in Cheyenne
December 18, 2005
The Wyoming Public Service Commission (PSC) sent out a public notice that they have received an application for Pacific Power to be sold to MidAmerican Energy Holdings Company. The PSC will hold a public hearing on the matter on Monday, January 23, 2006 at 9 am in its Hearing Room at 2515 Warren Avenue, Suite 300 in Cheyenne.
As an electric public utility, PacifiCorp is subject to PSC jurisdiction. It provides utility service in two areas in Wyoming under certificates of public convenience and necessity issued by the PSC. PacifiCorp is also authorized to provide retail electric utility service in California, Idaho, Oregon, Utah and Washington.
The "Wyoming West Service Territory" consists of portions of Lincoln, Sublette and Uinta counties, including the towns of Big Piney, Evanston, Kemmerer and Pinedale.
The "Wyoming East Service Territory" consists of potions of Albany, Big Horn, Carbon, Converse, Fremont, Hot Springs, Johnson, Natrona, Park, Platte, Sublette, Sweetwater and Washakie Counties. This includes the cities of Buffalo, Casper, Cody, Douglas, Glenrock, Green River, Lander, Laramie, Lovell, Rawlins, Riverton, Rock Springs, Thermopolis and Worland.
PacifiCorp is presently a wholly-owned subsidiary of ScottishPower PLC. MidAmerican is a privately held Iowa Corporation engaged primarily in the production and delivery of energy. In May, ScottishPower PLC and PacifiCorp Holdings Inc reached a stock purchase agreement for the sale of all of PacifiCorpís common stock for about $9.4 billion, including about $5.1 billion in cash and about $4.3 billion in net debt and preferred stock. Upon completion of the proposed reorganization, MidAmerican will acquire control of Pacificorp through a new direct parent company, PacifiCorp Holdings LLC.
The transaction will include the transfer of all of PacifiCorpís subsidiaries to MidAmerican. This includes Centralia Mining Company, Energy West Mining Company, Glenrock Coal Company, Interest Mining Company, Pacific Minerals Inc, Bridger Coal Company, PacifiCorp Environmental Remediation Company, PacifiCorp Future Generations Inc, Canopy Botanicals Inc, Canopy botanicals SRL, PacifiCorp Investment Management Inc, Trapper Mining Inc.
PacifiCorpís interests in any subsidiaries that are less than 100% owned by PacifiCorp are included in the sale (Bridger Coal Company, Trapper Mining, PacifiCorp Environmental Remediation Company). Affiliates of PacifiCorp owned by ScottishPower PLC through PHI will not be sold (PPM Energy Inc and PacifiCorp Group Holdings company.)
MidAmerican intends to operate PacifiCorp in much the same way as it is currently operated. PacifiCorpís headquarters will remain in Portland, Oregon. No reduction in workforce is planned as a result of the transaction. MidAmerican stated the chief advantage will be their companyís deployment of capital to meet Pacificorpís significant infrastructure needs.
Under Wyoming law, no reorganization of a public utility may take place without PSC approval and the reorganization cannot adversely affect the utilityís ability to serve the public. The MidAmerican/PacifiCorp joint application states the proposed reorganization will not affect other Wyoming utilities or adversely affect PacifiCorpís ability to serve the public. Utility companies in Nebraska and Utah have expressed concerns about the transaction (see protests link below).
The public can inspect the entire application at PacifiCorpís offices, including the one in Pinedale during regular business hours. The application and some of the supporting exhibits are available online at the links below.
The hearing is open to the public and interested parties do not need to be parties to the proceeding to make statements at the public hearing. Written comments may be sent to the Wyoming Public Service Commission, 2515 Warren Avenue, Suite 300, Cheyenne, WY 82002. Mention docket No. 20000-EA-05-226 in your correspondence.
PacifiCorp and MEHC Application for Approval of Transaction 07/05 Docket 20000-EA-5-226
MidAmerican Acquisition of PacifiCorp (PacifiCorp)
Applicantís legal response to protests and motions to intervene (47-page PDF)