SNWA board authorizes proposal to purchase Nevada Power Co.

LAS VEGAS, Aug. 22, 2002 -- At a public meeting this morning, the board of the Southern Nevada Water Authority (SNWA) approved an agenda item authorizing SNWA General Manager Patricia Mulroy to submit a purchase proposal to Sierra Pacific Resources (SRP) for Nevada Power Company, a wholly owned subsidiary of SRP.

The board approved, by a vote of 7-0, a measure authorizing SNWA management to submit a proposal to SRP offering to purchase Nevada Power Company's assets for $1.2 billion and the assumption and/or refinancing of approximately $2 billion of Nevada Power Company debt obligations currently outstanding, subject to customary conditions.

"The SNWA estimates it will be able to reduce rates to Nevada Power customers by 20 percent upon completion of the acquisition," Mulroy said. "The purchase of Nevada Power Company by SNWA not only will ensure significant savings to ratepayers and boost the local economy, but will deliver exceptional value to Sierra Pacific Resources' shareholders and bondholders and help return Sierra Pacific Resources to a position of financial health."

The decision follows the July 18, 2002, engagement of Morgan Stanley to develop an offer to purchase the Nevada Power Company. Since that time, Morgan Stanley, SNWA management and its financial and legal advisors have been analyzing publicly available information to assess Nevada Power's value, quantify the customer benefits of a potential SNWA purchase and determine the terms and conditions of a fair commercial offer to SRP. If the proposal were to result in a purchase agreement, it would be presented to the SNWA board for final approval.

The Southern Nevada Water Authority and its member agencies treat and deliver water to essentially the same customer base as Nevada Power Company. The largest single electricity user in Southern Nevada, the SNWA holds a AA-rating by Standard and Poor's.

SOURCE: Southern Nevada Water Authority

Sponsored by FLSmidth

Related Articles

Areva EVOPRO Hungary nuclear power renewable energy Paks nuclear power plant I&C instrumentation and controls

Areva, EVOPRO team on nuclear, renewable energy

Areva and Hungarian engineering company EVOPRO signed a memorandum of understanding to form a global cooperation in nuclear and renewable energy.

West Virginia state carbon plan OK House bill passes EPA Environmental Protection Agency

WVa House passes bill letting lawmakers OK state carbon plan

The House of Delegates has passed a bill letting lawmakers approve state plans to meet proposed federal carbon emission standards.

Follow Power Engineering on Twitter
Latest News

Invenergy’s Grand Ridge Energy Storage Project enters commercial operation

Invenergy announced the start of commercial operations of its 31.5-MW Grand Ridge Energy Stor...

Invenergy announces commercial operation of Nelson Energy Center in Illinois

Invenergy Clean Power announced the start of commercial operation of its 600-MW Nelson Energy...

Eos Energy Storage secures $23M for grid-scale batteries

Eos Energy Storage announced a final closing of a $23 million Round C equity financing, suppo...

Wisconsin governor: Obama power plant rule 'unworkable'

Wisconsin Gov. Scott Walker, a Republican eyeing a presidential run in 2016, says President B...

Kansas governor signs deal on renewable energy mandates

Kansas Gov. Sam Brownback has signed a compromise between the wind energy industry and critic...

NRC may increase oversight of Pilgrim nuclear power plant

The U.S. Nuclear Regulatory Commission (NRC) may increase oversight at the Pilgrim nuclear po...

SunEdison brings 14MW of solar power to Long Island

SunEdison (NYSE: SUNE) has signed agreements with five municipal entities on Long Island to b...

New Mexico regulators delay decision on power plant

New Mexico regulators on Wednesday gave Public Service Co. of New Mexico more time to ink agr...

Power Engineering Current Issue

01/01/2015
Volume 119, Issue 1
1501pe-cover-lg
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015

Buyers Guide Categories

Power Industry Wire News

UGE International Reports 2015 First Quarter Financial Results

UGE International Reports 2015 First Quarter Financial Results

AutoGrid Systems Is Short-Listed for the 2015 Red Herring Top 100 North America Award

AutoGrid Systems Is Short-Listed for the 2015 Red Herring Top 100 North America Award

2015 Bakken Conference Announces Pre-Conference Agenda With Special Presentation: "Bakken Workforce Update"

2015 Bakken Conference Announces Pre-Conference Agenda With Special Presentation: "Bakk...

MCW Energy Group to Present Its Corporate Story at LD Micro Conference in Los Angeles, Wednesday, June 3rd, 2015

MCW Energy Group to Present Its Corporate Story at LD Micro Conference in Los Angeles, ...

Orbital Tracking Corp. Appoints Lieutenant Commander Hector J. Delgado to Board of Directors

Orbital Tracking Corp. Appoints Lieutenant Commander Hector J. Delgado to Board of Dire...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>