Brief: Nevada Power profit exceeds expectations

Friday, Oct. 16, 1998 | 3:02 a.m.

Net income rose to $62 million, or $1.21 a share, from $52.7 million, or $1.06 a share, a year earlier. Nevada Power was expected to earn $1.16 a share, based on the average estimate of seven analysts polled by First Call Corp.

The strong earnings come ahead of a planned $2.5 billion merger with neighboring utility Sierra Pacific Resources Inc., and will make the combined company, with a customer growth rate three times the national average, more attractive to investors, analysts said.

"It's about time they got some positive results out of their growth," said Alan Lindstrom, a Redwood Securities analyst who has a "hold" rating on Nevada Power. "It gives them momentum to get on top of their growth and come out of the merger a lot more competitive."

Nevada Power has more than 1.2 million customers in and around Las Vegas, and is growing at about 6 percent annually.

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