Casino operators seek cut in Nevada Power's rates

Utility experts retained by casino operators have urged state regulators to reduce rates by $11.5 million, rather than raise them by $44 million as Nevada Power proposes.

The staff of the Public Utilities Commission has urged the PUC to slash the increase by $12 million.

The Bureau of Consumer Protection earlier suggested the commission either cut the rate to $3 million or close to zero. On Tuesday, Fred Schmidt, the state consumer advocate and bureau chief, said he's getting concerned about the company's stock decline.

Sierra Pacific Resources, the Reno-based parent of Nevada Power, saw its stock fall 25 cents Tuesday to $13 - less than half its price in early August.

Schmidt said the plummeting stock price could hurt the company's financial viability at some point. He favors negotiating a settlement on rates and other issues, which he said might engender a more positive market view on Sierra Pacific shares.

Other parties were more critical of Nevada Power's rate case.

The PUC staff urged the commission to eliminate a proposal that would shift the rate burden to residential customers.

Nevada Power wanted to raise residential rates by 8 percent, compared to 4.2 percent for commercial customers. The PUC staff favors raising customer rates in all classes by about 1.5 percent.

"We disagree with their position," said Faye Andersen, a spokeswoman for Nevada Power.

Nevada Power in July asked the commission to raise its rates by $44 million, or 4.9 percent, to offset increases in the cost of fuel used for power generation and for power purchased wholesale.

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