Second phase of hearings begin in NV Energy rate case

Utilities commission staffers on Monday quizzed William Rogers, NV Energy’s chief financial officer, about the financing of the Harry Allen power plant, which is scheduled for completion in 2011.

The questions came as the Nevada Public Utilities Commission opened its second series of hearings in NV Energy’s general rate case.

The hearings, which are scheduled to continue through Friday, are designed to determine how much NV Energy will get of the $310 million a year in rate increases the power utility is seeking. It was an evidentiary hearing full of administrative, regulatory and legal arcana, with perhaps a handful of consumers on hand to watch the proceedings.

NV Energy has asked for $34 million a year in the next three years for financing and carrying of the plant’s build-out of the Harry Allen plant. Commission attorneys wanted to know, for example, how the company was financing carrying costs now. (Through borrowing, stock and cash flow from other projects, Rogers said.)

Commission staffers had multiple questions about NV Energy’s request to cover roughly half of $10 million in legal fees the utility incurred against the Southern Nevada Water Authority and the Colorado River Commission in 2004. Commission attorneys noted in their questioning that the agency turned down an earlier request to pay for the fees, which came from partly legal maneuvering during a hostile takeover bid by the water authority.

Commission staff also noted that all parties tried to settle the general rate case last week but came to no agreement.

The lack of a deal didn’t bother Commissioner Sam Thompson, who said that a case of this size, combined with the recession, “cries out to be heard publicly.”

Thompson added that the commission wouldn’t urge a settlement.

NV Energy is scheduled to continue presenting its case Tuesday. The case’s interveners — the companies and trade groups who want to weigh in on NV Energy’s request for an increase — are scheduled to testify Wednesday.

The final phase of hearings begins Monday and will cover how any new rates will be applied to various classes of power users.

NV Energy has asked for a 13.6 percent overall increase in rates, with a 16.7 percent increase for single-family homes. Company officials say they need the rate increase to help recover $1.5 billion they’ve spent in recent years purchasing and building power plants to secure energy independence for the state.

The public can attend evidentiary hearings but can’t comment during the sessions. The hearings happen at 101 Convention Center Drive, Suite P111. To see NV Energy’s rate application, visit www.nvenergy.com/company/rates/filings, or stop by any NV Energy office to pick up a copy.

Utilities commissioners plan to issue a decision in a special-agenda meeting at their offices at 9:30 a.m. June 24.

Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.