Nevada utilities seek OK to borrow up to $1.1 billion

Tuesday, Oct. 17, 2000 | 12:34 p.m.

A third of the proceeds would be used to cover rising costs of wholesale power and fuel for power generation by Las Vegas-based Nevada Power Co. and Reno-based Sierra Pacific Power Co. Another third would be used for debt restructuring.

The two utilities also have asked the state Public Utilities Commission to approve another round of monthly rate increases to offset some of their costs.

Nevada Power is asking the state to let it boost rates by $15.8 million or 1.4 percent yearly starting Dec. 1. Residential rates would be boosted 1.3 percent or $1.04 a month.

In July, the PUC approved a so-called "global settlement" agreement reached by state officials, the utilities and major casino operators for deregulation and rate increases.

Since that agreement, Nevada Power has filed to raise rates by a total of 10.3 percent for residential customers.

Sierra Pacific Power, which serves Reno, seeks to boost rates of all customers by $1.4 percent or $7.7 million in its latest rate case.

While customers may complain about continuing increases, the PUC staff believes the rate increases would have been higher had the agreement not be reached.

Nevada Power's annualized increase would have been $90 million higher had the settlement not limited the amount of monthly increases the utility can get, according to the PUC staff. Sierra Pacific Power would have been able to recover $3.5 million more.