LAS VEGAS, March 22 /PRNewswire/ -- Nevada Power Company today announced
that it has reached two long-term agreements marking significant progress in
its efforts to stabilize rates and ensure reliable supplies for Nevada
customers. Related to its current deferred rate case pending before the
Public Utilities Commission of Nevada (PUCN), these agreements could
potentially result in an 8.8 percent increase as opposed to the original
request of 20-plus percent.
"These partnerships with Williams Energy and Reliant Energy provide an
insurance policy to our customers thereby mitigating the impact of the crisis
we endured last year," said Walt Higgins, chairman and chief executive officer
of Sierra Pacific Resources (parent company of Nevada Power).
The first of the Williams transactions, which upon PUCN approval, will
qualify for the deferred accounting mechanism established by the Nevada
Legislature in 2001, offers a four-year arrangement, which will lower costs in
2002. In addition, Williams in partnership with MidAmerican Energy Holding
Company, an affiliate of Berkshire Hathaway, and Nevada Power have agreed to
enter into negotiations for a full requirements contract that would help
manage future volatility in the marketplace and insulate customers from future
price swings. The Williams/MidAmerican agreement would optimize the financial
and power resources available to serve and retain existing power load
requirements while supporting further economic development across the state of
Nevada.
"Williams believes this partnership will set a great precedent for
developing comprehensive solutions for power reliability and price stability
for not only Nevada, but for the entire industry," said Steve Malcolm,
president and chief executive officer of Williams. "We are proud to work with
Nevada Power Company to bring this to the people of the state."
The Williams agreement also encourages Nevada Power to secure other power
supply agreements that Williams could manage under its broader long-term role
with the company. "Williams views this arrangement as an alliance between
Williams, MidAmerican, Nevada Power, its customers and its suppliers," said
Malcolm. Williams and MidAmerican would be prepared to build new generation
in order to serve Nevada Power's rapidly increasing power obligations.
Concurrent with that, Nevada Power also secured 625 megawatts from
Reliant Resources, a majority-owned subsidiary of Reliant Energy. Reliant
will provide the power from its southwestern portfolio, which includes two
plants in southern Nevada.
"We've stated consistently that we want to be a part of the solution for
Western power markets, and this deal helps ensure price stability for the
ratepayers of southern Nevada for years to come," said Jack Farley, president
of the Reliant Energy Wholesale Group West Region.
Both agreements are subject to regulatory approval by the Public Utilities
Commission of Nevada.
Headquartered in Nevada, Sierra Pacific Resources (NYSE: SRP) is a holding
company whose principal subsidiaries are Nevada Power Company, the electric
utility for most of southern Nevada, and Sierra Pacific Power Company, the
electric utility for most of northern Nevada and the Lake Tahoe area of
California. Sierra Pacific Power Company also distributes natural gas in the
Reno-Sparks area of northern Nevada. Other subsidiaries include the Tuscarora
Gas Pipeline Company, which owns 50 percent interest in an interstate natural
gas transmission partnership and several unregulated energy services
companies.
SOURCE Nevada Power Company
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Related links:
http://www.nevadapower.com
CONTACT:
Andrea Smith of Nevada Power Company,
+1-702-367-5683; or Sandy Fruham of Reliant, +1-713-207-3123; or
Paula Hall-Collins of Williams, +1-918-573-3332
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