Utility posts triple jump in earnings

      Nevada Power Co.'s earnings tripled in the first quarter over the same period last year, but Wall Street and the state's consumer advocate weren't impressed.
      Winter electrical sales have minimal importance for Nevada Power, compared to summers when the blazing heat keeps air conditioners running full blast, according to experts.
      "They make or break their year based on summer conditions," said Fred Schmidt, consumer advocate for utilities.
      Wall Street analysts are more interested in results during the summer months also, said Steve Rigazio, Nevada Power's chief financial officer. "They didn't get overly excited."
      Nevada Power's stock, in fact, dropped 38 cents to its 52-week low of $19.50 on the New York Stock Exchange.
      During the three months ending March 31, the utility earned $7.58 million (after preferred stock dividends), up from $2.53 million in the same period last year.
      Earnings per share were 15 cents, up from 5 cents last year.
      Rigazio attributed the strong results to several factors.
      The company earned 3 cents a share from the sale of its sulfur dioxide emission allowances because Nevada Power plants in Moapa and Henderson are cleaner than required, he said.
      In addition, weather conditions were favorable for power sales in the first quarter, he said.
      The company is enjoying a 6.8 percent increase annually in customers because of the population boom, but that was no surprise.
      Despite the growth, "we're pretty much keeping our expenses flat," Rigazio said. "We did a little better in controlling expenses than (analysts) expected."
      A change in the company's rate design also boosted revenues some, Rigazio said, but the gain from the rate design will be offset in the summer.
      Large power users are paying a bigger part of their bill for fixed charges and less for the amount of power they consume, Schmidt said.
      As a result, large customers are paying a little more than they did before for winter usage, but they will pay less in the summer when power consumption is high, he said.
      Despite the tripling of its earnings, Nevada Power's dividends are still "under pressure," Rigazio said.
      The company is paying out about $1.60 of the $1.65 a share it is earning annually.
      Revenues increased to $155.36 million, up from $147.13 million in the first quarter last year.
      The company also reported net income of $83.9 million for the 12 months ended March 31, compared with $75.9 million a year earlier. Earnings per share were $1.65, up 11 cents. The annual customer growth rate was 6.8 percent.