Sierra Pacific will appeal PUC ruling

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Thursday, Sept. 23, 1999 | 9:53 a.m.

At issue are the rates that the two utilities charge competitors to use their lines to reach customers. The Public Utilities Commission determined that Nevada Power's $610.5 million in revenues contained $14.2 million in overearnings last year, and Sierra Pacific Power's $513.6 million in revenues were $12.2 million too high.

"We don't agree with that," Michael Niggli, chairman and chief executive of Sierra Pacific Resources, said Wednesday.

Nevada Power was authorized to earn a 12 percent return on equity but only made 9.7 percent, which probably put Nevada Power in the bottom quarter of electric utilities nationally, Niggli said.

Malyn Malquist, the No. 2 executive at the holding company and president of Nevada Power, said the utilities intend to appeal the decision if the PUC doesn't change its ruling.

Malquist said the Public Utilities Commission order didn't limit itself to historical factors in determining rates, as it should have.

"It looks like they've looked forward and tried to guess what our rates should be in the future," Malquist said.