Sierra Pacific awaits OK to acquire Oregon utility

CARSON CITY - The Oregon Public Utility Commission appears ready to formally approve Reno-based Sierra Pacific Resources' $3.1 billion acquisition of Portland General Electric from Houston-based Enron Corp.

Two of three commissioners have approved an agreement between interested parties that was announced earlier, but Chairman Ron Eachus is in Africa and has not yet signed the decision.

Eachus seems to favor the agreement but wants to review the order before signing it, said Bob Valdez, a commission spokesman. The chairman is expected to sign the agreement by Monday.

Sierra also needs approval from the Federal Energy Regulatory Commission.

The Oregon commission order would freeze distribution line, transmission line and customer service rates for six years. The decision, however, 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, however, will get a $95 million credit toward their bills over seven years under the proposed order. Those credits are in addition to the $80 million credit that Enron owes Portland General Electric customers.

Commissioner Roger Hamilton issued a statement saying he supported the merger ''based on guarantees that rates and customer service will not suffer and that prior (Portland General Electric) investments in renewable resources will be maintained.''

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., backs Portland General Electric's agreement to support Oregon's electric deregulation legislation.

Sierra spokeswoman Faye Andersen said the company is waiting for a final decision and will comment then.

Portland General serves 700,000 customers including residents of Portland and Salem.