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Show r W&L signs a merger fupi71r 7 pmt with PaoifiCorp cou!'mprJ Deal could lower rates, may take a year to seal Cr&Ciit fating Power Company Merger Looks Like A Good Deal For Utah L Co. merger! Analysts Viev for T?f 1ICial move Merger as "It's hard to argue against an arrangement . , , . , , , , , ii unrelated to the merger. And for those workers, the where everybody comes out a winner. large PacifiCorp organization may offer some This editorial comment by the Deseret News seems employment options. to sum up reaction to the merger agreement Stockholder advantages. UP&L stockholders between Utah Power & Light Company and will profit from a premium value for their shares. PacifiCorp of Portland, Oregon. There are many The merger will also give them ownership in a good reasons for such a positive outlook: successful, diversified company. Lower rates. Rate reductions for Utah Power Benefits to area. The merger will enhance the customers of 5 to 10 equal to $50 million up area's ability to attract new commerce and industry to $ 100 million over the next four years can be with the prospect of lower, stable rates. PacifiCorp expected from efficiencies in combining the two has recently developed ties with Japan, Korea, systems. China and other Pacific Rim countries. The states Rate stability. Permanent access to the low-cost served by Utah Power can now become part of hydro power generated in the Northwest will help tnat actlvlty- stabilize Utah Power's rates after the 5 to 10 rate , a .fi,oofro Reaction and comments. reductions take erlect. UP&L will keep its local identity. Utah Power's "By vastly increasing the efficiency of our power name will stay the same and the company will retain system, we will be better able to compete in our its local offices. Its board of directors will continue rapidly changing industry. We will be able to to oversee the company. remain profitable for our shareholders and cost-Ideal cost-Ideal operational fit. UP&L's peak demand occurs effective for our customers. " in the summer; Pacific Power's in the winter. They -Frank N. Dayis, also peak at different times of the day. By merging, president and chief executive officer at power can be shipped back and forth to cover those Utah Power & Light Company peak usage times. Delays need for new plants. Such a delay can "The prospects are very real that the merger of save millions of dollars. If UP&L needs additional Utah Power & Light Co. and PacifiCorp will power to meet its summer peak, it can turn to its prove to be a 'good deal' for Utahns. " sister utility rather than build a new generating -The Salt Lake Tribune editorial, August 14, 1987 plant. Enhanced transmission network. The two "Utahns and others who get a monthly electric bill companies' transmission lines complement each from UP&L appear to be clear winners. " other. Pacific Power's runs mainly east-west, from -Deseret News editorial, August 14, 1987 the Pacific Ocean to Wyoming. Utah Power's runs north-south, from southern Idaho through Utah to "We think it is a good fit and makes sense. And I the Arizona border. don't see any problem with approvals. The way Increased sales prospects. Together, the compa- PacifiCorp operates they would retain Utah Power nies will be able to sell more electricity on the & Light as a separate operation. They tend to wholesale market. These revenues will help keep consolidate financing, but other than that UP&L rates down. will probably remain a relatively autonomous Minimal employee disruption. The merger will operation. " result in minimal disruption to UP&L employees. j Mark Luftig The company will continue its cost-cutting program. vice president, utility analyst. This may result in some layoffs, but they would be Salomon Brothers. Inc. U & LIGHT COMPANY : 'ft l!d TO Fourth Wednesday of Each Month 4:00 to 8:00 p.m. J American Fork Hospital Laboratory Jake this opportunity to pre-deposit credits into your 'fount if you need blood in the future or replace blood j ,0r loved ones. Remember to eat a good meal before donating. neS Call 756-6001, ext. 395, for appointment ork l AMERICAN FORlOjOSPITAL Vlntermountain Health Care Facility I |