Utilities seek rate increase

Tuesday, April 17, 2001 | 11:12 a.m.

CARSON CITY -- While the Legislature continues to debate the issue of energy, Nevada Power Co. and Sierra Pacific Power Co. have filed their monthly rate increases to recover the higher cost of fuel.

Nevada Power filed an application with the state Public Utilities Commission to boost rates an average 1.2 percent or $1.27 for a homeowner who uses 1,110 kilowatts a month. This will bring in an extra $19.4 million a year.

When the electric increases started last summer, a homeowner paid an average of $74.77. If this new rate increase goes into effect on June 1, the average residential customer would be paying $101.72 a month.

Meanwhile the Senate is expected to vote today on a bill to stop Nevada Power and Sierra Pacific from selling seven power plants for $1.7 billion.

The bill also would allow the two utilities to apply for fuel adjustment costs, which means the full higher costs could be passed on to consumers. The higher costs, however, would not take effect until March, as rates would be frozen until then.

At present the utilities can raise rates monthly.

Nevada Power says that it is now collecting only $1 for every $1.69 spent on the purchase of higher-priced fuel.

Sierra Pacific also filed for its monthly increase. It asked for a 1 percent increase, or 75 cents for a residential customer who uses 650 kilowatts. This increase would bring an extra $9.6 million a year.

Last November, the average monthly Sierra Pacific bill for a homeowner was $57.09. If this rate increase is approved, it will go to $69.90 on June 1.

Sierra Pacific officials say that the company collects $1 for every $1.60 it pays in higher fuel costs.