Regulators dismiss big Nevada Power rate hike request

The PUC said the Las Vegas-based utility failed to show how approval of the big rate hike would be "in the public interest" at this point in time.

The public interest argument had been raised by state Consumer Advocate Fred Schmidt in his earlier opposition to the Nevada Power request.

Schmidt said the request was flawed because of its timing and because it ran counter to a law that caps rates for residential customers.

The utility filed the rate case about a month after a $45 million increase took effect on Feb. 1. The earlier increase meant an average $3.50-per-month increase for residential customers.

Schmidt contended that a 1997 law that will deregulate electric utilities in 2000 put a cap on residential rates after the $45 million case was filed last summer.

Also, Schmidt argued that PUC regulations required Nevada Power to wait until now to file the rate case - not in the spring.

The consumer advocate also suggested the rate increase be considered as part of a merger of Reno-based Sierra Pacific Resources with Nevada Power.

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