PacifiCorp and Utah Power & Light Co. directors have reaffirmed their support of merging the two companies by agreeing not to exercise their option to terminate the merger agreement until Nov. 1.
The original document, signed a year ago this week, provides that either company may terminate the agreement if the merger is not effective by Aug. 12, 1988. In Wednesday's agreement, both companies have agreed not to exercise that right until at least Nov. 1, 1988.The merger was approved overwhelmingly by shareholders of both companies last December, and has received authorization from the seven state regulatory commissions involved in its review. It is currently pending before the Federal Energy Regulatory Commission (FERC) and both companies anticipate that it will issue a decision soon.
Approvals from regulators in Utah, Oregon and Washington in mid-July gave the merger unanimous authorization from thestates the companies serve.
"We remain committed to the merger and we continue to be optimistic that the FERC will approve it," said David F. Bolender, president of Pacific Power, the energy service division of PacifiCorp.
UP&L President and and Chief Executive Officer Frank N. Davis concurred, adding, "The sooner we close this merger, the sooner the customers and shareholders of the merged company will begin realizing the benefits from it - the long-term price stability, operating efficiencies and the other benefits we envision."
UP&L would join Pacific as a division of PacifiCorp if the merger is accomplished. Employees from both companies have been working for several months to coordinate a smooth transition.