Nevada Power and its critics file final cases with PUC

Friday, March 15, 2002 | 10:57 a.m.

Nevada Power Co. argued that its energy purchases for last March through September were prudent to avoid the blackouts that plagued California.

The utility, which is seeking $922 million plus interest from ratepayers for energy used during that seven-month period, and its critics filed summaries of their positions Thursday with the Public Utilities Commission of Nevada.

Nevada Power indicated that it accelerated its energy purchases in November in part because of "first-ever winter-time supply shortages and emergencies in California." Critics have charged that the utility paid too much for power and also bought too much.

The utility also defended itself against criticism that it could have purchased an inexpensive multi-year energy contract through Merrill Lynch in 1999 by stating that it "couldn't come to terms on price with sales representatives, and couldn't get to those who could talk about non-price terms and conditions."

In addition to its $922 million request, Nevada Power is seeking to charge ratepayers $53.19 per megawatt hour for fuel and energy purchases this year. The company has conceded that its costs may exceed that rate by as much as $260 million, an amount they possibly could seek from ratepayers on Dec. 1. But Nevada Power has expressed confidence that it will find ways to absorb those costs.

Others who filed summaries included: