Media Contact: Faye I. Andersen,  (775) 834-4822

Sierra Pacific Power Company filed today with the California Public Utilities Commission (CPUC) to reduce rates by $12.2 million, or an overall 15.2 percent for its California electric customers. 

If approved, the typical residential customer using 650 kilowatt-hours of electricity would see a $14.12 drop in monthly bills from $95.04 to $80.92 or a 14.9 percent decrease.  The CPUC is expected to hold hearings into Sierra Pacific's request, and could issue a decision as early as August 2008, for reduced rates to take effect on September 1, 2008

The filing was made under the CPUC's Energy Cost Adjustment Clause filing, which allows the utility to annually file to recover an under-collection, or return an over-collection of energy costs, such as fuel for power plants and power purchased on behalf of its customers, with no mark-up by the utility.  When these energy costs are lower than what the company charges its customers, the company requests to decrease rates.  Conversely, when energy costs are higher than the utility charges its customers, the company requests an increase. 

"This filing reflects lower estimated energy costs for the future.  The lower anticipated costs include natural gas used to generate electricity at the new, significantly more efficient Tracy Combined Cycle Generating Plant being readied for operation by Sierra Pacific this spring.  The costs to construct this new plant will be addressed in the company's next General Rate Case filing later this year,"said Mary Simmons, vice president of External Affairs for Sierra Pacific.  The last time the company filed to change its energy rates was in April 2006. 

Approximately 80 percent of Sierra Pacific's 46,000 California customers reside in the Lake Tahoe Basin.  The company's California service area extends from Portola in the north to Markleeville and Topaz Lake to Coleville in the south.  Sierra Pacific has approximately 320,000 customers in northern Nevada. 

Headquartered in Reno, Nevada, Sierra Pacific Power Company is the principal electric utility for most of northern Nevada and the Lake Tahoe area of California. It is a wholly owned subsidiary of Sierra Pacific Resources which also is the holding company for Nevada Power Company, the electric utility for southern Nevada. Sierra Pacific Power also distributes natural gas in the Reno-Sparks area of northern Nevada.