Friday, April 1, 2005 | 11:09 a.m.
Millions of dollars Nevada consumers received in a settlement with El Paso Corp. will be used to offset the future costs of natural gas for Southwest Gas Corp. and Nevada Power Co.
The state Bureau of Consumer Protection has decided that applying the $14.6 million Nevada has already collected from El Paso Corp. to future rate cases will give consumers the greatest benefit, said Marilyn Skibinski, regulator manager for the BCP.
The utilities run up deferred balances for the cost of fuel and power that exceed current rates. Those costs are eventually recovered in rate cases, but they also accrue charges such as interest. El Paso ultimately will pay Nevada more than $48 million but has 15 years to make the payments.
The 2003 deal settles claims from parties in Nevada, California, Oregon and Washington that the Houston-based company manipulated natural gas prices during the Western energy crisis.
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