Sierra Pacific Power Company
Item 8.01 Other Events
On April 12, 2006, the Public Utilities Commission of Nevada (PUCN) approved an overall 3.5% increase in electric rates for Sierra Pacific Power Company’s northern Nevada customers to reflect the continuing rise in fuel and energy costs. Sierra Pacific Power Company (SPPC) is a subsidiary of Sierra Pacific Resources (NYSE: SRP).
For SPPC’s typical residential customer using 740 kilowatt hours of electricity, monthly bills will increase by $2.96, from $95.07 to $98.03. The increase will become effective May 1, 2006.
Known as the Base Tariff Energy Rate (BTER), the increase represents a new rate going forward that reflects the future price of fuel and energy that SPPC expects to pay in order to supply its customers. It is a dollar-for-dollar pass through to customers with no mark-up or profit to SPPC. A majority of the increases can be attributed to the rising price of natural gas, a primary fuel used to generate electricity.
The PUCN’s approval of the BTER, is only one part of SPPC’s filing made with the PUCN in December 2005. Hearings are scheduled next month for the PUCN to review the request to recover costs SPPC has already incurred for fuel to generate electricity and purchase wholesale power to serve customers.
Nevada Power Company
Item 8.01 Other Events
On April 12, 2006, Nevada Power Company (NPC), a wholly-owned subsidiary of Sierra Pacific Resources announced that the PUCN approved the previously-announced stipulation with intervening parties on the going forward rate portion of NPC’s annual deferred energy filing.
The agreement results in an increase of approximately 7.1 percent for NPC’s typical residential customer using 1250 kilowatt hours. After these changes, this customer would see an average monthly increase of $9.10, to $136.98 effective May 1.
The PUCN’s decision does not affect the portion of the deferred energy filing made in January in which NPC requested to recover costs it had already incurred for fuel and purchased power. Hearings on that portion of the filing will be conducted in June with any approved rate changes effective in August 2006.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have each duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.
| | | | | |
| | Sierra Pacific Resources
(Registrant)
| |
| Date: April 13, 2006 | By: | /s/ John E. Brown | |
| | | John E. Brown | |
| | | Controller | |
| |
| | Nevada Power Company
(Registrant)
| |
| Date: April 13, 2006 | By: | /s/ John E. Brown | |
| | | John E. Brown | |
| | | Controller | |
| |
| | Sierra Pacific Power Company
(Registrant)
| |
| Date: April 13, 2006 | By: | /s/ John E. Brown | |
| | | John E. Brown | |
| | | Controller | |
| |
