State regulators heard a lot of criticism and some praise of Nevada Power Co. at a consumer meeting Wednesday on the 12 percent rate increase the electric utility wants to start June 1.
During a meeting at the Las Vegas Senior Center at Bonanza Road and Las Vegas Boulevard North, retired bomber pilot John Stamhagen credited the electric company with reliable service but said rates are too high.
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About 40 people attended the meeting, but most were state officials or utility managers.
Stamhagen recalled the Western energy crisis that sent rates soaring in 2002 and is still boosting rates.
"We should have probably let the lights go out," Stamhagen said. "It would have been a better thing."
Stamhagen criticized Nevada Power's management for poor planning.
"I am not in favor of rewarding management that doesn't plan adequately," Stamhagen said. "Nevada Power does not plan. Everything that occurs is a surprise in terms of population (growth)
"Maybe the best thing you can do is make do with what you got (in revenue) or sell out and get out and maybe somebody can do it better," Stamhagen said.
Richard Bianco, a frequent speaker at utility consumer sessions, lauded Nevada Power President Donald "Pat" Shalmy and the company. "We've come a long way in five years," Bianco said.
Bianco suggested California, Arizona and Nevada obtain federal funds for a solar project. "It can be a CAN program -- California, Arizona and Nevada."
Cliff Cruz presented the commission with documents on a compressed nitrogen system that he said creates energy with no fuel.
Speaking to Nevada Power executives, Cruz said: "You're still gouging the consumers no matter how you look at it. It's going to get to a point where you run all small business out of here."
Tom Pittman complained that Nevada Power proposed to raise general rates higher for consumers than big businesses such as casinos. While Nevada Power wants to increase single-family residential general rates by 11.6 percent, rates for a large Strip casino would increase by 3.9 percent, the company said.
"The rate design reflects the cost of service," Nevada Power spokeswoman Sonya Headen explained after the meeting. She said it is less expensive to sell the same amount of power to one large customer, such as a casino, than to many small customers, such as residents.
General rates, which reflect operational costs, investments and profits, are one of four rate changes pending before the Public Utilities Commission.
The commission is considering a deferred energy rate case. The commission will consider whether to approve settlements between state officials and Nevada Power over costs of terminated wholesale power contracts dating from the Western energy crisis and a Nevada Supreme Court order that the commission restore $180 million disallowed in a 2002 rate case decision.
The overall increase will be 12 percent for residential customers if the rate changes are approved as filed, according to the utilities commission. The average monthly residential bill would increase to $153.11 from $136.49.
Richard Lozo complained that Nevada Power was "coming back year after year after year" with rate increase cases.
"We're looking for you people to get brave and say this is the end of road (for rate increases)," Lozo told utilities commissioners.
Clo Banks, a retiree who lives in low-income housing, did not speak to the group, but she also opposed the rate increase.
"I live on fixed income. I just don't make enough for heating, bathing, cooling. It's just too much," Banks said.