Effective today, NV Energy is cutting its overall electric rates by 2.43 percent for Northern Nevada customers and decreasing overall natural-gas rates by 10.72 percent for Reno-Sparks customers.
With this change, total electric rates will have decreased nearly 25 percent, while total natural-gas rates have dropped nearly 30 percent, since January 2009.
According to the company, adding today's decreases will roll back total electric prices to 2004 levels and total natural-gas prices to 2001.
A typical electric customer is saving $26.14 each month over January 2009 rates. Average natural-gas customers will save $22.45 per month over 2009 rates.
Effective today, a typical residential customer using 746 kilowatt hours of electricity per month will see their bill decrease from $83.98 to $82.16. Natural-gas decreases effective Oct. 1 further reduce a typical residential customer's bill using 56 therms of gas from $50.55 to $45.52. According to state law, costs for fuel and purchased power are passed along to customers dollar-for-dollar, with no profit for the company.
Company officials attributed the decreases to a variety of factors, including the completion of the state-of-the-art Tracy Combined Cycle Generating Station, which is one-third more efficient in producing electricity than other conventional gas-fired power plants.
Prices in the energy markets also have declined, meaning fuel to generate electricity costs less, and these savings are passed on to customers in the form of lower electric rates. The same is true for natural gas, which the company purchases on behalf of its gas customers, according to Faye Andersen, northern communications manager for the company.