Responding to the Western energy crisis, the Nevada legislature passed Assembly Bill 369, which allows utilities to recover high costs for wholesale power over time. This “deferred accounting method” is designed to avoid rate hikes during the summer while assuring lenders, investors, and power suppliers that utilities will meet their financial obligations.
In addition, the bill repeals electric deregulation in Nevada and places a moratorium on the sale of power plants.
This legislation is an emergency measure, which means it is effective immediately. Under the bill’s provisions, rates would be continued at their April 1, 2001, levels, reflecting all recent increases to date, and remain stable until early next year, at which time they would be adjusted to reflect the actual costs of wholesale power and fuel over that period. If wholesale costs remain high, the legislation allows for the rates to be spread out over several years.
