Sierra Drops 32% on Denied Rate Adjustment Proposal

Sierra Pacific Resources (SRP) was plunging 32.7% to $10.15 after the Nevada Public Utilities Commission denied $437 million of Nevada Power's $922 million rate adjustment proposal, representing deferred power costs from the power price increases in 2000. Nevada Power is a unit of Sierra Pacific. Standard & Poor's downgraded Sierra Pacific's debt rating, while Goldman Sachs and Merrill Lynch cut their ratings on the company's stock.