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PACIFICORP
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June 15, 1999
Editors:
1. Attached is a copy of a news release from the Washington Utilities and
Transportation Commission (WUTC), announcing the WUTC staff's recommendation to
approve the merger between ScottishPower and PacifiCorp.
In response to this development, PacifiCorp CEO-designate Alan Richardson said
today:
"We are very pleased that by recommending approval of our merger, the WUTC staff
has seen the benefits our combined company will bring to customers. We worked
closely with the staff to achieve this positive position."
2. ScottishPower shareholders voted to approve the merger today. PacifiCorp
shareholders are scheduled to vote on the merger on Thursday, June 17.
For further information:
Rachel Sherrard, ScottishPower, for media, (503) 797-7567
Leslie Carlson, PacifiCorp, for media, (503) 813-7282
Angela Hult, PacifiCorp, for investors, (503) 813-7234
[WUTC LOGO]
WUTC staff recommend approval of ScottishPower's plan to acquire PacifiCorp
Merger represents first proposed takeover of a U.S. utility by a foreign company
OLYMPIA, Wash. - ScottishPower, the United Kingdom's largest electric company,
received an approval recommendation today from the commission utilities staff
for its proposed acquisition of Portland, Ore.-based PacifiCorp.
Saying the merger is in the public interest, should improve customer service and
benefit ratepayers, staff members of the Washington Utilities and Transportation
Commission (WUTC) recommended approval of ScottishPower's plan to buy
PacifiCorp.
The three-member WUTC will make a final decision on the merger this fall. The
commission sets PacifiCorp's rates, which allow the utility to recover those
costs and make a profit on its investment. Evidentiary hearings will take place
Aug. 17 to Aug. 20 at the commission's headquarters in Olympia, Wash. A public
hearing on the proposed merger is scheduled from 6 to 9 p.m. Monday, Aug. 23 in
the Kiva Room at Davis High School, 212 S. Sixth Ave., Yakima.
Under staff's adoption of ScottishPower's proposal, Washington customers of
PacifiCorp could expect fewer power outages, faster response times and
money-back guarantees. The new company also would be required to develop an
educational program to inform customers about their new customer- service
rights.
"Based on the planned system reliability improvements and customer service
guarantees, Washington customers should expect to receive improved service
following the acquisition than otherwise would have been received from
PacifiCorp," said staff in submitting written testimony.
ScottishPower has proposed eight customer service guarantees, which include
paying customers for outages and missed appointments. For example, if the
electricity goes out due to a failure in PacifiCorp's system and it's not
restored within 24 hours, each residential customer would receive $50. The
company must pay business and industrial customers $100 for a 24-hour outage.
The average PacifiCorp customer went without power for 68 minutes in 1997 and 90
minutes in 1998.
Last year, PacifiCorp answered 55 percent of telephone calls within 45 seconds
at the Portland business center where Washington's customers calls are routed
and answered. Within 4 months after the merger is completed, the company is
ensuring that 80 percent of phone calls will be answered within 30 seconds. "The
company's commitment to 80 percent answered within 30 seconds represents a
substantial improvement in service to customers," said commission staff.
In addition, the utility is proposing to report back on a commission complaint
within two working days, invest in system improvements and restore power within
three hours 80 percent of the time. The company estimated between 1995 and 1998,
customers had their electricity restored within three hours from a low of 49
percent in 1996 to a high of 84 percent in 1997.
ScottishPower must get regulatory approval from all five state utilities
commissions in which PacifiCorp operates (Oregon, Wyoming, Idaho, Utah and
Washington), as well as the United States Federal Energy Regulatory Commission,
before stockholders of the companies vote on it. Regulators in the United
Kingdom and Australia have already approved the merger. Final approval is not
expected before the end of the year. If approved, the merger would mark the
first time a foreign company has purchased a major American electric-utility
company.
In Washington, PacifiCorp serves 115,924 customers in five Southcentral to
Southeastern counties: Yakima, Walla Walla, Kittitas, Garfield and Columbia,
including the cities of Yakima, Toppenish, Sunnyside, Walla Walla and Dayton.
PacifiCorp operates 17 coal plants and 52 hydroelectric facilities which
generate 8300 megawatts of electricity.
Glasgow-based ScottishPower agreed to buy PacifiCorp last December for $6.3
billion. PacifiCorp is the third largest electric utility west of the
Mississippi River with 1.4 million customers and about 10,000 employees in five
Western states - Oregon, Utah, Wyoming, Idaho and Washington. The combined
company, which will be known as ScottishPower plc (public limited company), will
have some 7 million customers and 23,500 employees worldwide, making it by some
measures one of the world's top 10 utilities.
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For more information, contact Marilyn Meehan at 360-664-1125.
For further information: For immediate release
June 16, 1999
Rachel Sherrard, ScottishPower, for media, 503 797 7567
Leslie Carlson, PacifiCorp, for media, 503 813 7282
Angela Hult, PacifiCorp, for investors, 503 813 7234
FERC Approves ScottishPower/PacifiCorp Merger
PORTLAND, Oregon-ScottishPower and PacifiCorp cleared a significant
regulatory hurdle today with approval for the merger of the two companies from
the U.S. Federal Energy Regulatory Commission, the companies said.
"FERC's action is a key U.S. regulatory approval and keeps us on track to
complete this transaction later this year," said Keith McKennon, Chairman and
Chief Executive Officer of PacifiCorp.
"We are delighted that the FERC has given approval for the proposed merger
with PacifiCorp," said Alan Richardson, CEO designate of PacifiCorp. "We
appreciate the FERC giving our application expedited approval."
The transaction already has been cleared in the U.S. under the
Hart-Scott-Rodino Antitrust Improvements Act and by regulatory authorities in
the United Kingdom and Australia.
Applications for regulatory approval are pending in Oregon, Utah, Wyoming,
Washington and Idaho, while California approved the transaction last week.
ScottishPower shareholders approved the transaction Tuesday and PacifiCorp
shareholders are meeting in Salt Lake City Thursday to vote on the merger.
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