Casinos ask regulators to fine Nevada Power

Wednesday, Nov. 17, 1999 | 10:12 a.m.

Mirage Resorts, Park Place Entertainment and Mandalay Resort Group, all major power users, filed motions Tuesday for sanctions through attorney Martha Ashcraft.

Ashcraft complained about Nevada Power's rate increase request for $110 million and a separate case on rates it will charge competitors to use its distribution power lines after electric industry deregulation.

"We believe we can show that we complied with the law in both cases," said Faye Andersen, a spokesman for Nevada Power and Sierra Pacific Resources.

Tuesday's motions follow a warning from Commissioner Michael Pitlock that Sierra Pacific Resources, the parent company of Nevada Power Co., could be fined for failing to comply with a September order.

In the energy rate case, Ashcraft said Nevada Power violated an earlier commitment to the Legislature not to seek new rate increases for energy used for power generation after May 31.

Last summer, Nevada Power sought to boost rates by $44 million for the year ending May 31. In September, it sought to amend the rate increase case to include factors up until Aug. 31, boosting the total amount sought to $110 million.

The other case focuses on distribution rates that competitors would pay Nevada Power and Sierra Pacific Power Co., another Sierra Pacific Resources subsidiary, for use of distribution lines to reach retail power customers.

In September, the Public Utilities Commission directed the company to provide its proposed rates, based on the commission's finding of revenue requirements.

The PUC decided that Nevada Power was receiving $611 million in annual revenue and concluded that was $14 million too high. It calculated that Sierra Pacific Power, which serves northern Nevada, had $513 million in annual revenues - or $12 million too much.

Sierra Pacific Resources objected to that decision. The commission, however, told Sierra Pacific Resources to submit proposed distribution rates based on those numbers.

Instead, the company provided rate information based on another revenue total.