Sierra Pacific Power Co., a utility serving Northern Nevada, filed a deferred energy rate adjustment case with state regulators on Friday, seeking a 27 cent reduction in the typical residential customer's electric bill.

Sierra Pacific is asking the Public Utilities Commission to trim rates by one-third of a percent or $3 million. The rate reduction stems from the ending of a previous rate increase and recent declines in the price of natural gas.

However, the company proposes to collect $5 million over four years for Sierra Pacific Power's share of a settlement with bankrupt Enron Corp.

Nevada Power Co., which serves the Las Vegas area, paid about $75 million to Enron to settle a lawsuit over terminated power supply contracts. Customers of Nevada Power can expect Nevada Power to also seek recovery of its Enron settlement share when Nevada Power files its deferred energy rate case in January, said Michael Yackira, chief financial officer of Sierra Pacific Resources, the utilities' parent.

However, Nevada Power has not decided on what over what time frame it will seek to recover the $75 million from Southern Nevada customers, Yackira said.

Enron terminated power supply contracts with the two utilities in 2002 after rating agencies lowered debt of the two utilities to junk bond levels. Enron said it was not satisfied with financial assurances from Sierra Pacific Power and Nevada Power and terminated contracts to supply power to the utilities. Yet, Enron then sued the utilities, asking a judge to compensate it, because market prices for power were lower than prices quoted in the contracts with the Nevada companies.

The latest Sierra Pacific rate case would cut the monthly bill of a typical residential customer using 740 kilowatt hours by 27 cents to $98.64. The new rates would take effect July 1.

The company related the rate decrease to lower costs of natural gas, the fuel most often used to generate electricity.

"Today's filing reflects the recent declines in natural gas costs," Vice President Mary Simmons said in a statement. "These costs have been more stable in recent months after years of volatile and often rapidly rising prices."

Sierra Pacific Power's gas utility rates were reduced by 2.4 percent starting Friday also because gas prices have become stable.