City may fight request for hike in power rate

Diana Sahagun

Thursday, Dec. 27, 2001 | 10:34 a.m.

The city of Las Vegas may be the second government in the Las Vegas Valley to dispute Nevada Power Co.'s record-breaking rate hike request, which could have a dramatic effect on the city's operating costs.

Nevada Power has filed a request with the Public Utilities Commission of Nevada to increase rates by $929 million, to cover increased fuel and power costs.

Deputy City Manager Doug Selby said his office has not yet determined the economic impact such a rate increase would have on the city's budget. But during the last fiscal year, which ended June 30, the city's utility budget was $12 million.

On Wednesday the City Council will consider intervening on the request and direct the City Manager's office to battle the rate hike. The discussion comes one month after the Clark County Commission decided to intervene in the rate request.

The council will have several options, including intervening, which would allow the city to sit in on discussions between the Public Utilities Commission and Nevada Power, or to formally protest the rate hike, Selby said. If the PUC decides to approve the rate increase, the city doesn't have much of a recourse, he said.

Selby said intervening in rate cases isn't unusual for governments or large organizations. The Southern Nevada Water Authority routinely intervenes, he said, partly because it is such a large power user.