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To merge or to sell is the question for NorthWestern |
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Wednesday, 14 March 2007 |
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Page 2 of 2
Reading from a prepared statement, Beaglehole noted BBI took a long hard look at NWE and saw it as a company with a stable cash flow, good management and dedicated employees.
However, Mary Wright, third panel member and attorney for the MCC had some issues and concerns of the proposed sale.
“One,” she said, “is that BBI has offered to pay $700 million more than the book value of NWE. We have concerns that BBI will make up for that cost by increasing rates.”
Another concern is that BBI won’t invest money into the upkeep of the company.
Beaglehole said the sale would not be paid for customer rates. Also, there will be no name change and the company will keep their headquarters in Butte.
In a public comment segment, Ted Kronebusch, representing the Port Authority and others said, “I encourage Montana to move forward with this acquisition.”
Jerry Christensen, who has been with the company for 30 years, said he supported the merger.
Commissioner Sandy Broesder wanted to know about BBI’s interest in wind development. Beaglehole said BBI has experience in renewable energy, “a sister company is the largest in the world in wind power.”
She later told the I-O, “They (BBI) back economic development, I like that.”
Public Comment on the merger/sale can still be made to the PSC, by phone at (406) 444-6199, by mail at State of Montana Public Service Commission, 1701 Prospect Ave., Box 202601, Helena 59620-2601 or go on line at www.psc.mt.us/consumers/comments/ .
You will need to provide your name and contact information with comments.
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