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NEVADA POWER CO. REJECTS PSC STAFF'S OVEREARNINGS PETITION

 LAS VEGAS, Nov. 22 /PRNewswire/ -- Nevada Power Co. (NYSE: NVP) rejects Public Service Commission of Nevada Staff filing of overearnings, announced Vice President, Finance and Chief Financial Officer Steven Rigazio. The Staff has filed a petition contending the company is overearning $2.7 to $17 million a year based on a return on equity range of 10.5 percent to 12.5 percent using a May 1993 test period.
 "We reject the Staff's findings," said Rigazio. "Nevada Power's earnings have improved recently. That doesn't mean we're overearning. It means we're recovering from a three-year period of financial strain caused by rapid growth and regulatory lag."
 The Commission set Nevada Power Co.'s authorized rate of return at 12.50 percent in July of 1992. Third quarter earnings for 1993, released Oct. 29, show the company earned a 10.49 percent return on equity, according to Rigazio.
 "The Staff is using test period data based on May figures," said Rigazio. "We have issued financial figures through September which indicate we're well within our authorized rate of return.
 "It is important to note that Staff functions separately and independently from the five Commissioners," he added. "The Commissioners will determine whether or not to accept the petition and go forward with a review in this matter."
 The petition will likely come before the PSC in December.
 In June, the Commissioners directed the Staff to develop and recommend formal regulations for earnings reviews. At this time, no rules have been proposed, nor are any in place.
 -0- 11/22/93
 /CONTACT: Vince Alberta (media), 702-367-5680, or Robyn Warsinske (investors), Manager of Investor Relations, 702-367-5610/
 (NVP)


CO: Nevada Power Co. ST: Nevada IN: UTI SU:

LS-EH -- LA041 -- 7040 11/22/93 19:42 EST
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Publication:PR Newswire
Date:Nov 22, 1993
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