Thursday, April 29, 2004 | 10:39 a.m.
The state Public Utilities Commission on Wednesday approved a measure allowing electric utilities to receive preliminary approval of short-term power contracts.
In the past, utilities were only required to receive commission approval for long-term deals, but Nevada Power Co. has had hundreds of millions of dollars in short-term deals disallowed after the fact by regulators in recent years. Those disallowances left the utility with a junk credit rating, and the new provision for prior approval should limit future disallowances.
The commission also adopted rules requiring electric companies to consider both financial and environmental benefits of renewable power resources when making long-term energy procurement plans.
Additionally, utilities could receive financial incentives for developing new renewable resources. Incentives could include such measures as an enhanced return on equity and other preferred treatment of expenses incurred in shoring up the state's renewable energy portfolio.
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