NV Energy, MidAmerican deal takes step forward

Las Vegas-based NV Energy (NYSE:NVE) took a step closer to becoming part of MidAmerican Energy Holdings (MEH) Sept. 25 when NV Energy shareholders approved the previously-announced merger.

 The transaction, which is expected to be completed in the first quarter of 2014, remains subject to customary closing conditions, including approvals from FERC and the Public Utilities Commission of Nevada.

In a statement, NV Energy President and CEO Michael Yackira praised the shareholder vote, although the company statement did not provide any vote breakdown. “We will now turn our focus to the remaining approvals needed to complete the transaction,” Yackira said.

NV Energy and its subsidiaries, Nevada Power and Sierra Pacific Power, serve roughly 2.4 million Nevada residents “and nearly 40 million tourists annually,” according to the company website.

Iowa-based MidAmerican Energy Holdings is part of Berkshire Hathaway (NYSE: BRK.A; BRK.B), which is headed by Warren Buffett. MEH counts MidAmerican Energy, MidAmerican Renewables and PacifiCorp among its subsidiaries.

MidAmerican Energy Holdings currently owns or controls more than 23,500 MW of generating capacity and about 178,000 miles of transmission and distribution lines, according to its website.

The proposed merger was announced May 29. In a July FERC filing by the NV Energy subsidiaries, a Navigant Consulting analysis found the merger would not create market power problems.

On the congressional front, Senate Majority Leader Harry Reid (D-Nev.) has thrown his support behind the proposed merger.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.