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Acquisition agreement is good outcome
In May, MidAmerican Energy Holdings Company
reached an agreement with ScottishPower to acquire its subsidiary, PacifiCorp, and create an energy holding company serving
6.6 million customers worldwide. The transaction has a value of approximately $9.4 billion.
David L. Sokol, MidAmerican chairman and chief executive officer, said, “This acquisition advances our strategy of owning
and operating a portfolio of high-quality energy businesses with a strong focus on customer satisfaction, employee commitment
and efficiency.”
Warren Buffett, chairman of Berkshire Hathaway, said, “The energy sector has long interested us, and this is the right fit.
We are excited to be making this long-term investment, through MidAmerican, in the premier energy company in the West. PacifiCorp
is a great company with outstanding assets.”
Following the acquisition, MidAmerican will own, operate and have under construction or in advanced development more than
16,000 megawatts of electric generation in the United States, relying on a diverse fuel mix of coal, geothermal, hydroelectric,
natural gas, nuclear, biomass and wind power to meet customers’ needs.
PacifiCorp will operate under its current name and will continue to be headquartered in Portland, Ore. The company will continue
operating as Pacific Power in Oregon, Wyoming, Washington and northern California, and as Utah Power in Utah and Idaho. PacifiCorp
serves electricity to 1.6 million customers.
The acquisition is subject to state and federal approvals and is expected to be completed in 2006.
Judi Johansen, president and chief executive officer of PacifiCorp, added, “I am very pleased about today's announcement.
This transaction will allow PacifiCorp to continue its focus on employees, customers, communities and the environment."
Greg Abel, president and chief operating officer of MidAmerican, said, “I am pleased to be working with PacifiCorp’s great
management team and dedicated employees. I look forward to supporting them in the execution of their business plans.”
MidAmerican Energy Holdings Company is based in Des Moines, Iowa, and is a privately owned global provider of energy services.
Through its energy-related business platforms – CalEnergy, CE Electric UK, Kern River Gas Transmission Company, Northern Natural
Gas Company and MidAmerican Energy Company – MidAmerican provides electric and natural gas service to 5 million customers
worldwide.
MidAmerican has shown itself to be a long-term investor in capital-intensive energy businesses, and has a proven track record
for holding businesses for the long term, investing in them and allowing them to operate relatively independently. MidAmerican
shares many of the same priorities as PacifiCorp, including customer service, operational excellence, employee commitment,
strong local presence in communities and strong environmental stewardship.
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