Nevada's Bureau of Consumer Protection is weighing in on the proposed sale of NV Energy. The Bureau said the present deal was not in the public's interest.
MidAmerican hopes to acquire NV Energy for $5.6 billion dollars. The proposal is before the Public Utilities Commission. In filings before the Commission this week, the Bureau said the deal, as it is currently structured, would raise rates for customers. Dan Jacobsen, who is a technical Staff Manager for the Bureau, told News 4 today the Commission should reject a provision that would provide a $2 billion dollar "bonus" to NV Energy stockholders. He said, "They are asking for the Nevada ratepayers to gradually pay off at least a portion of that bonus. We think there is no benefit to Nevada ratepayers to provide a bonus to NV Energy stockholders."
The Bureau is also requesting an immediate $30 million dollar rate reduction for Nevada Power customers. It is also asking the PUC to require at least $15 million of annual cost reductions to be passed on to customers during upcoming general rate cases for Nevada Power and Sierra Pacfic.
The proposed sale is before the Nevada Public Utilities Commission. MidAmerican can file a response before an evidentiary hearing is held before the Commission in late November. A decision on the sale is expected in late December.