Electric company seeking another rate hike

Wednesday, Nov. 15, 2000 | 11:14 a.m.

CARSON CITY -- Nevada Power Co. and its sister Sierra Pacific Power Co., in Reno are filing applications today to raise electric rates again.

A spokesman for Sierra Pacific Resources Inc., the parent company of the two utilities, said the rates would be the same as submitted last month.

This will be the sixth application in the last six months by Nevada Power to raise rates to its customers in Clark County to offset the higher cost of fuel.

The utility plans to raise rates by 1.4 percent starting on Jan. 1. This will result in an extra $15.8 million a year. For the average homeowner who uses 1,100 kilowatt hours, the bill will rise $1.04 a month.

This brings the total increase to 11.2 percent in the last six months.

Sierra Pacific will boost rates by $7.7 million a year in Northern Nevada. The average bill for a homeowner who uses 650 kilowatts will go up 85 cents.

These increases, according to the parent company of the two utilities, will cover higher fuel or purchased power costs. They will not raise the profits of the company.

The parent company last week reported a $19.5 million third quarter net loss mostly due to higher than expected prices it paid for fuel for its generating plants.

For the third quarter, Nevada Power registered a net loss of $8.8 million compared to a net income of $63 million a year earlier. Sierra Pacific had a net loss of $1.6 million compared to a net income of $12.5 million a year ago.

Under a negotiated settlement between the utilities, the state consumer advocate, the staff of the state Public Utilities Commission and the gaming industry, the two electric companies are permitted to seek monthly adjustments in their rates to reflect higher prices.

The settlement was approved by the utilities commission on a 2-1 vote. Under the agreement the utilities must submit an audit of their utility costs every six months to the commission to verify that the extra money was needed for higher fuel costs.

Gov. Kenny Guinn has appointed a task force to study Nevada's energy policy and to see if the state is ready to move into the era of deregulation. Twice the governor has rejected plans to open the door to competition to Nevada Power and Sierra Pacific.