Energy year capped with rate hike request

Thursday, Jan. 3, 2002 | 11:17 a.m.

The year 2001 in the Nevada energy industry was marked by Nevada Power Co.'s stunning $921 million rate hike request to pay for fuel and purchased power during the energy crisis that plagued much of the West last year.

The 21-percent increase, proposed on Dec. 1, would be spread over three years and is the subject of regulatory hearings beginning this month.

And though the crisis prompted Gov. Kenny Guinn and the Legislature to delay complete deregulation of the electricity industry, they did agree to allow big users like casinos and mines to find alternative electricity suppliers.

The early weeks of the year also saw the beginning of a massive race to build new power plants and related transmission infrastructure in Southern Nevada as the state realized this area could become the energizer of the West.

No less than seven new power plants were on the drawing board by mid-February that promised almost 4,000 megawatts of new electricity, enough to power 4 million homes.

"It's the location," said the late Steve Rigazio, then president of Nevada Power. "Plus, you can physically get a plant done in Nevada. No plants have been built in California in 14 years ... Nevada has said in essence that we like for people to build power plants."

That extra power could help avoid a repeat of the deliberate blackout in parts of Las Vegas on July 2, when Nevada Power ran short of electricity.