Wednesday, April 1, 1998 | 10:06 a.m.
CARSON CITY -- While electric rates are frozen in northern Nevada, Nevada Power Co. customers in Clark County could see an increase later this year, a state consumer official said.
Fred Schmidt, director of the state Bureau of Consumer Protection, told a legislative study committee Tuesday that unlike there is for customers of Sierra Pacific Power Co. of Reno, there is no cap on power rates in Southern Nevada.
Nevada Power is required to file a case later this year telling the state Public Utilities Commission whether its cost of fuel has risen higher than expected or is lower than originally forecasted. If the cost is more than predicted, the Las Vegas utility could be permitted to boost rates to recover the excess.
"I don't know if they will increase or decrease," Schmidt told the Legislative Commission's Utility Oversight Committee. He said there is an agreement between the state and Sierra Pacific not to raise rates until the year 2000.
Bob Crowell, attorney for Nevada Power, said it's too early to say whether it would ask for an increase or decrease because of changing fuel costs. He did say, however, the company will not apply this year for a general rate hike.
Schmidt, a senior deputy attorney general, made his comments as the oversight committee discussed whether competition in the electric industry will mean lower rates for homeowners.
The committee, at the suggestion of Sen. Joe Neal, D-North Las Vegas, agreed to discuss at its next meeting, recommending a cap be placed on any rate increase when outside companies are allowed to compete with Nevada Power and Sierra Pacific Power.
Competition won't arrive at least until late 1999. Neal, a Democratic candidate for governor, wants the 1999 Legislature to impose the cap so homeowners won't be harmed by competition.
Already in the law is a provision that electric rates cannot be raised for two years after competition is allowed in Nevada. That date is still up in the air.
"We can do more to protect the consumer (when competition arrives)," Schmidt agreed.
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