Bill could help test power competition

Larry Henry

Thursday, Jan. 30, 1997 | 5:01 a.m.

CARSON CITY -- Some people in Las Vegas may soon know whether it will cost more to turn on the light switch under a plan allowing competition in the electric industry.

Sen. Randolph Townsend, R-Reno, said Wednesday he will introduce a bill creating a test program with 6 percent of the population in Las Vegas to learn if competition saves money for homes and businesses.

He came up with that number because Clark County is growing by about that much each year, he said.

If the bill passes, the test period will run from this year until the next Legislature in 1999, Townsend said. He does not know when he will introduce the bill.

Full competition will begin in three to five years, when the federal government forces states to break up monopolies such as Nevada Power Co., he said.

A pilot program in New Hampshire using 3 percent of the customers led to a rate decrease of 15 percent. If that happens in Las Vegas, rates will drop for average homeowners from $70.84 a month to $60.21.

Critics contend that residential users will enjoy an immediate decrease after competition begins but could experience higher rates over time because desirable customers, such as casinos and mines, will strike sweetheart deals with private companies, leaving less lucrative residential customers to fend for themselves.

Townsend said the Legislature will work to protect residential users.

"There could be a rate decrease, but there won't be a rate increase," Townsend said. He chairs the Commerce and Labor Committee, which hears utility legislation in the Senate.

Townsend's remarks came after the final meeting of an interim committee studying deregulation.

The committee was given $35,000, including $25,000 from the Public Service Commission and the remainder from the Legislature, to develop a plan for competition.

After holding 11 meetings over 13 months, however, the committee did not offer any specific proposals, other than voting to create another interim committee after the Legislature adjourns this summer.

Committee Chairman Pete Ernaut, R-Reno, defended the slow pace.

"This is the most far-reaching public policy decision in the state of Nevada," he said. "It would be a grave mistake to make lasting decisions on insufficient data."

Assembly Speaker Joe Dini, D-Yerington, who serves on the committee, said he wants to ensure that the PSC maintains regulatory control over competing companies.

After Wednesday's hearing, one legislator, speaking on the condition that his name not be used, said the most controversial issue will be whether the PSC will have less oversight.