Las Vegas NowNV Energy Seeks Rate Increase
The rate hike request was filed with the Public Utilities Commission which must approve the increase.
"I'm retired so my wages don't go up so that means it's a cut to me," said Richard Burley.Southern Nevada's electricity provider announced that it is asking for a double-digit increase next year.
The company held a news conference Monday and says it realizes times are tough in this economy, but the hike is needed to cover costs. NV Energy wants a nearly 15-percent overall increase which would translate to about a 17.5-percent increase for the average residential customer.
The rate hike request was filed with the Public Utilities Commission which must approve the increase.
"I'm retired so my wages don't go up so that means it's a cut to me," said Richard Burley, who was busy putting up Christmas lights in his yard.
By this time next year, Burley and other Southern Nevadans could be paying 17.5-percent more on their power bills, if NV Energy gets approval for a rate hike.
NV Energy President Michael Yackira says the investments in three power plants in Nevada are the main reason for the increase. The increase also includes a return to the company's shareholders.
"The fact of the matter is that it would be more costly if we were continuing to rely on markets like California to produce electricity rather than having the power plants in Nevada," said Yackira.
To ease the impact on customers, NV Energy says it would delay the implementation of the rate increase to September 2009 instead of July 2009, one of the hottest months in the summer. It would also offer a low-income rate for customers who meet certain income qualifications.
"We are certainly understanding that it is hard to raise rates and with the economic times we have today, it's even more difficult and that's why we are making the two proposals to our commission to try to alleviate some of the effects of this," Yackira said.
NV Energy, formally Nevada Power, did get a rate increase of 11-percent in May of 2007 to help fund the construction of the new power plants.
In August of 2008, Nevada power did offer a rate cut due to lower power purchase costs.
The Public Utilities Commission will have hearings on the issue in the coming months.
