Stock falls for owner of Nevada Power after quarterly loss reported

Sierra Pacific Resources Inc. today reported a quarterly loss of $13.5 million or 17 cents per share after a higher-than-expected charge because of a failed rate-hike effort.

The Reno-based parent company of Nevada Power Co. reported revenues of $409.9 million and a $56 million pre-tax charge against earnings. The charge was taken after the Public Utilities Commission of Nevada disallowed a $110 million deferred energy rate increase for Nevada Power Co. earlier this month. Analysts had projected a $30 million charge.

In the same quarter a year earlier, the company reported net income of $4.3 million, 8 cents per share, on revenues of $181.7 million. Since that quarter, Nevada Power and Sierra Pacific Resources have merged.

"You can imagine how disappointed investors are," said Ron Tanner, managing director of utilities research for Legg Mason, Baltimore. "This is the biggest money-loser that I have recommended in my career. Shareholders have been devastated, especially since this was a company billed as a low risk."

Asked about the company's fourth-quarter earnings, Tanner said, "What earnings? This is the only utility in the country that is in a growth area that had negative earnings for the quarter."

Sierra Pacific stock traded this morning at $12.75, a new 52-week low.

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