Nevada Power seeks hike

Tuesday, Jan. 16, 2001 | 11:08 a.m.

CARSON CITY -- Nevada Power Co. has filed a request to raise rates by $19.3 million a year to its 607,000 customers in Clark County.

The utility wants to boost the monthly rate to an average homeowner by 1.5 percent, or $1.26 for those who use 1,100 kilowatts. The increase is to offset the higher cost of fuel paid by the company and will not translate into a higher profit, the company said.

The rate would go into effect March 1. The latest increase will bring to 15 percent, or $10.50 a month, the amount Nevada Power will have risen rates since the state Public Utilities Commission approved a "global settlement" last year as part of the move to deregulate the utility.

Sierra Pacific Power Co., the sister company of Nevada Power, also submitted its monthly rate increase Friday to the utilities commission.

It seeks $7.8 million more a year, or 62 cents for the average homeowner who uses 650 kilowatt hours.

The Reno-based company serves about 263,000 customers in Northern Nevada. If the rate increase goes into effect on March 1, Sierra Pacific's rates will have risen by 8 percent, or $4.55 a month, for a homeowner since last November.

The 1999 Legislature in approving a bill to start deregulation of the electric industry froze rates to residential customers for three years. Gov. Kenny Guinn has delayed the start of open competition.

Under a "global settlement" worked out in the summer of 2000 by the utilities, the gaming industry, state Consumer Advocate Tim Hay and the staff of the PUC, rates were permitted to go up a maximum monthly percentage to offset the higher costs of fuel being paid by the utilities.

Since last October Nevada Power has asked for $105 million more a year in electric rates. If there had not been a cap on the amount of the monthly increase, the Las Vegas utility would have been able to file for $200 million in higher rates.

Sierra Pacific Power Co. has sought $55 million, and it would have been allowed to file for $68 million if the cap had not been in place.

The monthly rate increases remain in effect until February 2003, unless the upcoming Legislature changes the law.