Alan Richardson was running from meeting to meeting in Salt Lake City on Friday, fielding questions about the proposed merger of his Scottish utility company with PacifiCorp.
People asked how many Utahns will lose their jobs if ScottishPower takes control. They questioned the company's commitment to community support and economic development. They wanted to know whether decisions about their power supply will be made here or in an office an ocean away.Richardson, the ScottishPower official who will be chief executive officer of PacifiCorp after the merger, could not give specific answers to every question, and he did not completely eliminate skepticism. But he did seem to ease the concerns of some members of the Utah Board of Business and Economic Development.
The proposed $12 billion merger, announced last December, would make Oregon-based PacifiCorp a subsidiary of ScottishPower. PacifiCorp is the parent company of Utah Power, which has about 585,000 customers and 2,300 employees in the state.
Board member Tim Anderson, a St. George attorney, said the merger presents some unique challenges, because it will be the first takeover of a U.S. electric utility by a foreign company.
"Whether there's a cost to those challenges is something that needs to be carefully watched," Anderson said. "You always wonder if people from Scotland will be as good to us as people from Oregon."
Several board members asked about the future of Utah Power's employees, and Richardson said he does not know how many job cuts might follow the merger.
"Utah will lose jobs. So will Oregon, and so will Wyoming," Richardson said. "But we will do that in a very positive way."
He said past staff reductions by ScottishPower have been voluntary, and the company has a good history of working with labor unions and employees.
"The job reductions will come down the line when we get into PacifiCorp," Richardson said. "We're not in a rush. You'll see us coming."
Joel A. Bradford, board member from Utah Valley State College, said he wanted to make sure ScottishPower will not sell PacifiCorp's assets for a quick profit.
"ScottishPower acquires businesses to invest in them," Richardson responded. "We're buying PacifiCorp to run it. We're a proud company, and we're a capable company."
He said the Scottish utility already promised in documents filed with the Utah Public Service Commission that it will improve service for PacifiCorp customers. And he said the company's goal is to make PacifiCorp one of the top 10 U.S. utilities by 2005.
When asked whether PacifiCorp's Utah presence will change after the merger, Richardson said the company's "strong and clear leadership" here will not diminish. Executives in the United States will retain the power to make most decisions about PacifiCorp's operations, he said, and the merger will enhance the company's community involvement.
"I'm not saying for a moment that it's all easy. . . ," Richardson said. "I would be silly to say there's not a cultural difference (between companies), because there is."
But he said he remains confident that the merger will gain necessary state and federal regulatory approvals and close before the end of the year.
Until then, he knows, he is likely to hear many more questions.