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Public Utilities Commission Approves New Southern Nevada Energy Rates

Posted on: Wednesday, 24 June 2009, 19:29 CDT

LAS VEGAS, June 24 /PRNewswire-FirstCall/ -- The Public Utilities Commission of Nevada (PUCN) today approved an increase in electric rates for NV Energy's (NYSE: NVE) utility serving southern Nevada.

The increase is a result of the company's mandatory General Rate Case (GRC) filing made in December, 2008. The Commission has instructed the company to implement new rates in a two-phase process. The projected net impact on residential customers from both phases is expected to result in a total increase of approximately 6.9 percent annually.

The first increase, 3 percent, will take effect on July 1, 2009. As disclosed by the PUCN today, the typical residential customer using 2,181 kilowatt hours of electricity per month in July, August and September, will see a bill increase of $7.68 per month.

The second increase, an estimated 3.9 percent, would follow on January 1, 2010. This increase includes the remainder of the PUCN's order today minus an estimated decrease in the Base Tariff Energy Rate (fuel and purchased power costs) resulting from declines in natural gas prices.

The PUCN established an overall rate of return for the company of 8.53 percent and a return on equity of 10.5 percent. The overall revenue increase to the company is approximately $221 million.

NV Energy customers are encouraged to take advantage of specific programs that will ultimately help curtail the dollar impact of the increase, such as the Equal Payment Program, which spreads costs evenly over a 12-month period, as well as utilize new features offered by the company through "My Account" at nvenergy.com. The website features tools that will help customers track energy consumption and determine savings opportunities through a variety of energy conservation and efficiency programs.

Headquartered in Las Vegas, NV Energy, Inc. is a holding company whose principal subsidiaries, Nevada Power Company and Sierra Pacific Power Company, are doing business as NV Energy. Serving a 54,500-square-mile service territory that stretches north to south from Elko to Laughlin, NV Energy provides a wide range of energy services and products to approximately 2.4 million citizens of Nevada as well as approximately 40 million tourists annually.

These statements contain forward-looking statements regarding the future performance of Nevada Power Company d/b/a NV Energy, within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to, changes in the cost of fuel and purchased power and rate changes or adjustments related to fuel and purchased power determined by the Public Utilities Commission of Nevada. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of NV Energy, are contained in the Annual Reports of NV Energy, Inc. and Nevada Power Company d/b/a NV Energy on Form 10-K for the year ended December 31, 2008 and in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2009, filed with the SEC. NV Energy undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

SOURCE NV Energy, Inc.

Source: PR Newswire

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