Lowest power rates might go even lower

Jeffrey Libby

Wednesday, July 11, 2001 | 10:21 a.m.

Boulder City residents, who already pay the least expensive electricity rates in Southern Nevada, could secure a new deal by Aug. 12 that would lower their monthly bills even further.

City officials on Tuesday hoped to sign a contract with El Dorado Energy that would allow them to buy up to 10 megawatts of power each month at rates slightly above what it costs the plant to generate the power. But some details remain unresolved, City Manager John Sullard said.

The deal is part of a contract signed in 1997 that would allow El Dorado to build a 480-megawatt, natural gas-fired plant 17 miles southwest of downtown.

Ten megawatts is enough power to serve about 5,000 homes during the hottest summer months. It's during that time that Boulder City residents crank up their air conditioners, using more energy than is available from the fixed supply of cheap energy from Hoover and Glen Canyon dams.

That high use forces the city to buy power on the open market, and in recent months costs have skyrocketed due to a regional energy crunch.

Through the proposed deal, Boulder City would purchase additional power during hot months from El Dorado Energy rather than Nevada Power, Ned Shamo, electricity distribution superintendent for Boulder City, said.

Homeowners in Henderson, North Las Vegas and Las Vegas have paid Nevada Power an average of about 9.2 cents per kilowatt hour in 2001, Sonya Headen, company spokeswoman said.

With an average monthly use of 1,100 kilowatt hours, Las Vegas Valley residents have paid about $100 a month.

But Boulder City has paid Nevada Power as much as 29 cents per kilowatt-hour this month to cover peak-use periods, Sullard said. Even so, Boulder City residents on average have paid just 4.8 cents per kilowatt hour in 2001, with an average monthly bill of $42.

If the city closes the deal with El Dorado Energy, residents could avoid buying on the spot market, paying closer to 4 cents per kilowatt-hour, even during peak-use times.

But even with new deals nearly closed for cheaper power, Mayor Bob Ferraro said residents could face higher energy rates as soon as September.

"We've been buying on the spot market for two years now, and it's been taking its toll," Ferraro said.