State trims Nevada Power rate request by $66 million

Friday, Feb. 4, 2000 | 3:07 a.m.

The Public Utilities Commission of Nevada rejected a $110 million rate increase requested by Nevada Power on Friday, saying the utility can apply for only a $44.3 million rate hike.

A Nevada Power executive said the decision would be appealed.

Following a Friday hearing that wrapped up more than a week of testimony, commissioners cast a 2-1 vote to reject Nevada Power's request for a rate increase to offset fuel costs the company anticipates over the next three years during a rate freeze.

The proposed increase, billed as the final bump in rates Nevada Power would get before the deregulation of the electrical industry in the state, was opposed by the state's Bureau of Consumer Protection, the Southern Nevada Water Authority and representatives of three of the state's largest casino companies.

Malyn Malquist, chief operating officer of Nevada Power, said the company would appeal the PUC vote in a petition for judicial review expected to be filed in Carson City.

Hearings have been set Feb. 21-24 on an earlier rate increase proposal of $44.3 million filed by the company in July. The rejected $110 million proposal, which would have raised residential rates by 15 percent, was filed by the company in September as an amendment to the earlier filing.

Commissioners also unanimously denied a motion for sanctions against Nevada Power, filed by attorneys representing Mirage Resorts Inc., Park Place Entertainment Corp. and Mandalay Resort Group.

The casinos -- all of which opposed the $110 million hike -- asked the PUC to fine Nevada Power $100,000, alleging that the utility had deliberately disobeyed commission rulings.