PUC lets Sierra Pacific recover natural gas costs

Sierra Pacific Power received authorization last week from the Public Utility Commission of Nevada (PUCN) to recover additional costs beginning February 1, 2001, that the company pays to its natural gas suppliers. The resulting increase in the price per therm paid by residential customers will be approximately 35 percent, which is only about one-third the increase during the past year reported by the Department of Energy for the cost of natural gas at the wellhead.

According to the American Gas Association, natural gas prices have risen during the last year because of growing demand coupled with tight domestic supplies, resulting from the high, volatile prices for oil, a competing fuel. The gas bill for a typical Sierra Pacific residential customer who uses 53 therms of natural gas per month will rise by $11.52 (from $33.16 to $44.68). Customers will begin seeing the new rate reflected in their bills as of February 1, 2001.

"This increase is a direct result of the higher cost of natural gas being charged to Sierra Pacific by its gas suppliers," said Bill Branch, Director of Rates and Regulatory Affairs for Sierra Pacific Power Co. "These higher costs charged by suppliers are passed through to customers on a dollar-for-dollar basis." Branch said the company has been able to protect customers from the full impact of prices being paid by other utilities across the nation because Sierra Pacific has been particularly efficient in managing how it purchases its gas supplies.

Edited by Stephen Heiser