Nevada Power parent misses forecast

Monday, May 8, 2000 | 11:31 a.m.

Sierra Pacific Resources Inc., the parent company of Nevada Power Co., had increased revenues in the first quarter of 2000, but reported a lower profit that fell well below an analyst's projection.

The company, which merged with Nevada Power last summer, had higher revenue and lower net income in the quarter than the two companies had combined in the first quarter of 1999.

The company reported revenues of $402.9 million compared with pro-forma revenues of $375 million in the first quarter of 1999. The company reported net income of $18.2 million compared with $24.5 million pro forma in the first quarter of 1999.

Sierra Pacific reported earnings per share of 23 cents. The two companies together had earnings per share of 74 cents in the first quarter of 1999 -- 9 cents for Nevada Power and 65 cents for Sierra Pacific.

Earlier this year, an analyst had projected Sierra Pacific to report earnings of 50 cents per share for the quarter. In March, earnings estimates were lowered when the company was unsuccessful in its efforts to obtain a fuel costs rate increase from the Public Utilities Commission of Nevada.

Ultimately, the PUC ordered a rate decrease for the company. The commission's decision has been appealed.

Sierra Pacific officials said the 7.5 percent and 5.2 percent increases in revenue for Nevada Power and Sierra Pacific, respectively, were attributed to customer growth for both companies and an earlier fuel and purchased power rate increase approved for Nevada Power.

In Southern Nevada, Nevada Power reported the number of residential, commercial and industrial customers increased by 5.8 percent, 5 percent and 5.4 percent, respectively.

Net income for the quarter included a $2.5 million pre-tax charge reflecting the company's decision to get out of the retail energy sales business.

Sierra Pacific and Nevada Power serve 843,000 electric customers. Sierra Pacific also has natural gas and water customers in Northern Nevada.

Despite announcing its lower profit, Sierra Pacific stock rose 44 cents this morning to $15.19.