Flickering light at end of power line

Tuesday, May 14, 1996 | 11:59 a.m.

WITHIN five years, consumers could be looking at a brand-new world in utility services. It also could be a world filled with uncertainties.

That's if attorney Jon Wellinghoff gets his way at the Legislature in securing competition for electrical power services. He wants to permit "retail wheeling," where utility companies like Nevada Power would be required to lease their lines to other suppliers.

That would allow customers to shop around for the cheapest electricity on the market and pay the utility company a nominal transmission fee. Wellinghoff envisions residential areas forming cooperatives to negotiate with power suppliers.

The proposal also would help counteract price hikes when large power users break away from their utilities, throwing more costs on residents. Mirage Resorts is planning a gas-fire generation plant near The Mirage and Treasure Island hotel-casinos to reduce its costs. If other large users follow suit, the rate base would have to be realigned, probably on the backs of the residents.

But will the rates actually go down? Certainly not if many residents can't sign on to a cooperative. And even if they can, one wonders what the cumulative bill may be. A lower bid on power might not mean much once the transmission fees are tacked on.

Telephone services 20 years ago were integrated in a single bill. Today, they're broken down into segments many of which require additional charges. Even with discount services, the bills are higher.

And the free market is a two-edged sword. Shortages of power could send the costs through the roof. Today, the Public Service Commission regulates the price structure as a condition of Nevada Power being a permitted monopoly.

For better or worse, the momentum already is under way. The Public Service Commission has been reviewing the proposal and ways to keep sales of power equitable. But the process won't come overnight. It might take five to seven years to develop the regulations to permit shopping for electrical power.

But Wellinghoff is obviously ahead of the curve on this issue. It remains to be seen whether his plan will be the best answer.

What is certain is that the utilities are undergoing dramatic changes. What is not certain is what it all will mean.