Nevada’s two major private-sector electric utilities, now operating as NV Energy for the northern and southern portions of the state, last Friday filed their latest rate changes with the Nevada Public Utilities Commission (PUC). Decreases for power and natural gas retail utility rates are being sought in the north, while combined annual fuel cost adjustment and general rate adjustments in the south seek a net $77 million annual electric revenue increase.

Reno-based NV Energy’s former Sierra Pacific Power Co. filed with the PUC to decrease its electric rates by 2.7% and its natural gas retail rates overall by 4.7%. Any changes eventually authorized by the state regulators would be effective Oct. 1, a utility spokesperson said.

Like its southern Nevada counterpart, the northern NV Energy utility filed for what are called “deferred energy rates” to adjust for the costs the utility had to pay for fuel supplies during the past 12-month period. In this case, the current electric and gas rates in effect were more than the utility needed to cover its fuel costs.

In the south, for the former Nevada Power Co. now operating as Las Vegas-based NV Energy, fuel charges the past 12-month period exceeded the rates it now has in effect.

“For 2008, the company’s actual fuel costs to generate electricity were higher on average than the costs reflected in current customer rates,” a Las Vegas-based utility spokesperson said. “This occurred due to a steep run-up in energy prices during the first half of 2008, and the rapid increase in energy prices resulted in a $77 million undercollection in rates.”

NV Energy also said the full impact of the company’s pending general rate increase for the southern Nevada utility operations is included in the proposed $77 million increase. The utility filed the general rate case with the PUC last September. It said the deferred fuel cost adjustment would go into effect Oct. 1 if the state regulatory commission acts within the expected upcoming time period for processing the rate filings.

NV Energy’s Reno-based power and gas operations serve 300,000 electric and 150,000 gas customers. The Las Vegas-based utility serves a population center of 2.4 million, and approximately 40 million tourists annually.

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