U.S. OKs Foreign Purchase of 2 Utilities

The Federal Energy Regulatory Commission has cleared the first foreign purchases of U.S. utilities, approving two separate deals by British firms worth a total of $12.4 billion. Scottish Power is to buy PacifiCorp of Portland, Ore., for $9.2 billion. National Grid, the world’s largest privately owned transmission company, is to buy New England Electric System of Westborough, Mass., for $3.2 billion. FERC commissioners said the foreign purchasers did not raise any special issues during their review. In addition to Oregon, PacifiCorp provides power to customers in Idaho, Utah, Wyoming, California and Washington. Regulatory approval from all the states involved is necessary before the deals are finalized, and the Securities and Exchange Commission must also complete a review. California regulators have already signed off on the PacifiCorp deal. The National Grid-New England Electric merger, which still requires regulatory approval from the SEC, Nuclear Regulatory Commission and state regulators, is expected to close in early 2000, New England Electric officials said.