Casino firms seek fine against Nevada Power for disobeying PUC

Thursday, Nov. 18, 1999 | 11:35 a.m.

Court ruling

Nevada Power may be entitled to collect $5.7 million from its Las Vegas customers as a result of a Nevada Supreme Court ruling Wednesday.

The high court backed District Court Judge Mike Griffin's ruling that the Public Utilities Commission was wrong in how it analyzed a 1997 rate case.

Nevada Power says it is now permitted to recover $5.7 million from ratepayers. If Nevada Power attempts to charge customers, it would cost homeowners 25 cents a month.

Three casino companies have asked the Public Utilities Commission of Nevada to fine Nevada Power Co. $200,000 for disobeying commission rulings.

Two separate motions for sanctions were filed Tuesday by an attorney representing Mirage Resorts, Park Place Entertainment and Mandalay Resort Group. The two motions each seek the maximum $100,000 fine the PUC can impose for a company's failure to comply with its orders.

Because they are among the largest power users, casino companies routinely intervene in rate cases and other regulatory issues involving utilities.

In filings by Martha Ashcraft, an attorney acting on behalf of the three casino groups, Nevada Power was criticized for its procedures in calculating depreciation rates and for its accounting procedures as the company prepares for deregulation and restructuring in March.

Ashcraft accused Nevada Power of ignoring commission orders.

"For too many weeks and months, (Nevada Power) has continuously violated the commission's regulations and orders," the filing says. "Such time-consuming and costly abuses of this process must be stopped. ...

"(Nevada Power) is making a mockery of a very serious process to deregulate our vertically integrated electric power industry and to bring competition to the state of Nevada. The ability of (Nevada Power) to frustrate the process is an embarrassment to the state of Nevada and a great disservice to its utility consumers."

Nevada Power and its parent company, Sierra Pacific Resources Inc., issued a statement saying they have filed their cases in compliance with state law.

A spokeswoman said the same group has filed earlier petitions with the PUC to dismiss Nevada Power's deferred energy rate case and seek sanctions against the company, but those were denied by the commission earlier this month.

The deferred energy case is significant to consumers because it is the last to be considered before electrical competition begins.