LAS VEGAS, April 3 /PRNewswire-FirstCall/ -- Nevada Power Company
announced today that it plans to file a petition for rehearing and/or
reconsideration of the order last week denying nearly half of the company's
deferred energy expenses from 2001. Meantime, as part of a series of actions
in response to the order, the utility's parent company, Sierra Pacific
Resources, is delaying two major projects and curtailing others that will
reduce capital expenses by at least $125 million this year.
"We believe the PUCN has erred in excluding evidence that the company's
power purchase costs were prudently incurred," said Sierra Pacific Resources
chairman and CEO Walter Higgins.
"We do not believe this decision fulfills the intent of the law passed
last year that was designed to provide assurances to our company as we took
risks to protect our consumers from the meltdown of western power markets,"
said Higgins.
The operating companies plan to delay construction projects and
expenditures on two major transmission projects -- Nevada Power's Centennial
transmission grid near Las Vegas and Sierra Pacific Power's Falcon-Gonder
transmission project in northern Nevada -- as part of a comprehensive review
of capital projects and operations and maintenance expenses. The company
continues to evaluate other cost reduction opportunities to further reduce its
capital expenditures and operating expenses. Nevada Power President Mark
Ruelle said Nevada Power's priorities are on the health and safety of
customers and service reliability for existing customers, but said it was too
soon to predict what impact the cost reductions may have on other services or
new construction.
"We are determined to pursue all available remedies to address this
decision," said Higgins. "We continue to actively consider a variety of
actions to protect our shareholders and customers as this situation develops.
One of these steps is to realign our priorities and projects to preserve our
financial condition and meet our basic obligations to our customers, investors
and suppliers."
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.sierrapacificresources.com
Company News On-Call:
http://www.prnewswire.com/comp/604296.html
CONTACT:
Andrea Smith of Nevada Power Company,
+1-702-367-5683
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