Advocate asks PUC to trim rate increase

Schmidt said the three-member PUC earlier adopted his experts' method for separating capacity costs from purchased power prices. But Schmidt said the company failed to use the approved methodology in its request.

"We're not accusing (Nevada Power executives) of bad faith, but we're saying they've got to comply with the commission's order," Schmidt said.

Nevada Power said the utility doesn't believe the recently adopted standards should be applied retroactively, said spokesman Tom Henley. He added the PUC should use the new methods only in future energy rate cases.

The issue is capacity cost, or the expense of owning and operating power plants. Schmidt contends capacity costs are included in Nevada Power's general rates and shouldn't be factored into energy rates as well.

The proposed rate increase for fuel and purchased power expense will become effective March 1. If the advocate's proposal is adopted, rates for residential customers would increase by 2 percent, rather than the 2.9 percent sought by Nevada Power.

Rates for nonresidential customers, including businesses, would rise 7.5 percent under Nevada Power's proposal but only 4.3 percent if the consumer advocate prevails.

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