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El Paso/Coastal deal OK'd
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July 26, 2000: 3:41 p.m. ET
Federal agency also approves merger of NiSource, Columbia Energy
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NEW YORK (CNNfn) - The Federal Energy Regulatory Commission approved two of the biggest energy deals of the year Wednesday, the $19.2 billion merger of El Paso Energy Corp. with Coastal Corp. and the $8.4 billion combination of NiSource Inc. with Columbia Energy Group.
However, the agency postponed its vote on the $2.1 billion deal from Sierra Pacific Power Co. (SRP: Research, Estimates) and Nevada Power Co. to acquire Portland General Electric for $2.1 billion. The acquisition would create one of the nation's largest utilities, with more than $9 billion in assets and more than 1.7 million customers.
"At this time the Commission didn't have enough information to accurately assess the affect of the merger on competition," FERC spokeswoman Barbara Connors said.
 The commission has ordered further proceedings and ordered the companies to provide more information.
Neither the El Paso/Coastal nor the NiSource/Columbia deal will harm competition, including gas supplies for electric generation, FERC said. The combination of Houston-based El Paso (EPG: Research, Estimates) with Coastal Corp., (CGP: Research, Estimates) also of Houston, will form one of the country's largest producers of national gas. The combined company will have 58,000 miles of pipeline extending from the West Coast to the Southeast, New England and Midwest.
Melville, Ind.-based NiSource (NI: Research, Estimates) owns Indiana's largest utility, Northern Indiana Public Service Co., which provides gas and electricity to about 660,000 customers in that state.
Lastly, FERC conditionally approved the merger of UtiliCorp. United Inc. (UCU: Research, Estimates) with St. Joseph Light & Power Co. (SAJ: Research, Estimates) and Empire District Electric (EDE: Research, Estimates). The utilities must file a revised competitive analysis six months before they finalize the deal, that should list the merger's effect on competition, Connors said. 
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FERC
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