Dec 24 - Knight Ridder/Tribune Business News - Steven Oberbeck The Salt Lake Tribune

A bid by billionaire Warren Buffett's MidAmerican Energy Holdings Co. to acquire PacifiCorp, which owns Utah Power, is amassing support from community leaders across the state.

As the Utah Public Service Commission weighed approval of the purchase in recent weeks, Salt Lake City Mayor Rocky Anderson, West Valley City Mayor Dennis Nordfelt and the Carbon County Commission have written to the PSC voicing their support of the purchase. MidAmerican would bring a lot of experience and greater attention to local energy needs, Anderson said Friday.

"And they've promised to give increased emphasis on conservation programs and developing cleaner and more renewable energy sources."

Part of Buffett's Berkshire Hathaway business empire, the Des Moines, Iowa-based MidAmerican Energy announced in May that it had struck a deal to buy PacifiCorp for $9.4 billion from its Glasgow-based parent company, Scottish Power.

Late last month, the energy conglomerate that also owns the Salt Lake City-based Kern River Gas Transmission Co. told the PSC its proposed purchase was supported by key players in Utah's regulatory arena including the Committee of Consumer Services, the Division of Public Utilities and the Utah Association of Energy Users.

In his letter to the PSC, Nordfelt in West Valley City joined that group, indicating he believes the purchase will be good for that community's residents. Along with promised increased investments in transmission and distribution assets, Nordfelt pointed out there is a strong commitment by MidAmerican to "maintain sufficient operations and front-line staff to provide adequate and reliable service, keeping up with load and customer growth."

For Carbon County Commissioner Michael Milovich, returning the ownership of PacifiCorp and Utah Power to an American-based company will be a big benefit as well.

"We've had a good relationship over the years with PacifiCorp under Scottish Power's ownership," he said. "But one thing you can say about Warren Buffett: He doesn't buy any business unless he sees an opportunity to improve it."

Carbon and Emery counties have a huge stake in MidAmerican's proposed purchase, Milovich said. The counties are home to three of PacifiCorp's coal-fired power plans, miles of transmission lines and other facilities. And PacifiCorp employs a significant portion of both counties' population.

"We are confident that [MidAmerican] has the means and desire to use its substantial resources to both maintain and greatly enhance PacifiCorp's operations not only for our local benefit but for the advancement of regional energy interests," the Carbon County Commission said in its letter to the PSC.

As part of its commitment made in advance of gaining approval for its purchase of PacifiCorp, MidAmerican promises to invest hundreds of millions in Utah over the next five years to help keep electricity flowing without interruption to more than 700,000 customers.

Writing as the president of the Utah Alliance for Economic Development, a group of economic development professionals from both the public and private sectors, Scott Hirschi noted the proposed acquisition comes at a time of economic expansion for the state.

Hirschi, who serves as the economic development director for Washington County, said MidAmerican's pledge to spend $1 billion for capital improvements to PacifiCorp's system over the next five years will help give Utah Power the resources necessary to meet the growing demand for electricity.

The acquisition will be good for Utah customers and good for Utah's economic development climate, he said.

The Utah Public Service Commission is expected to rule on MidAmerican's acquisition request sometime during the first quarter next year.