Where I Stand: Legislators should not leave homeowners unprotected

Friday, May 30, 1997 | 11:44 a.m.

WHEN THE 1997 NEVADA LEGISLATURE adjourns this summer, the restructuring of the Public Service Commission and how you and I will be able to purchase energy will be another step down the road. When the 1999 Legislature meets, the job will be completed, and Nevada will join most other states now going down that path. We will be able to determine what company and at what price our power will cost us, but it will still arrive over the lines and delivery methods already in place. This means that retail competition can be the biggest change Nevadans will experience.

Already, power producers and brokers are lining up and making known their ability to help "reduce your power rates." Just how much and for how long these "reductions" will benefit Nevada homeowners can't be determined at this time or any time in the near future. This is but one of the many reasons Nevada legislators aren't jumping into the power game too fast. This is exactly what their neighbors to the West did recently, as the California Public Utility Commission agreed to release all its controls over power companies effective Jan. 1, 1998. Ready or not, they have it.

This move resulted in the Los Angeles Times editorializing: "Welcome to the world of electric power deregulation.

"No longer will traditional utility companies have a lock on electricity, all the way from the power plant to the user. They will have to share the market with new providers. The California Public Utilities Commission decided (May 6) that, beginning next year, consumers can buy their power, even their own meters, from any marketer they select. But the power will still be distributed and delivered over lines owned by today's utility companies. Details on these and other changes will be forthcoming from the PUC over the next few months.

"Confusing? Undoubtedly so, and consumers should take care. There is no need to rashly dump your tried and true utility service when power marketers start soliciting, as early as July. The voice on the phone or the pitch in the mail may offer free airline miles, a couple of months of free cable service or a rebate to lure you into making a change. Be wary of promises of big reductions in your electricity bill. Tap into the information offered by the $20 million, state-sponsored consumer education program that will start in September."

The dreams of large Nevada corporations and the power companies, to suddenly see the end of the PSC and all meaningful regulation becoming a reality, could cause a nightmare for the homeowner. Certainly the secret agreements that Nevada Power and Southwest Gas want to have with the big users can only result in financial windfalls for those corporations and little, if any, benefit for homeowners.

The PSC wants the legislation to reflect the following: "The distribution of electric services to customers will continue to be provided by a single company and regulated as it is today. Distribution service will continue to be priced on a 'cost of service' basis that takes into account the costs of expanding, maintaining and operating the system to accommodate growth and maintain the reliability of the system." This isn't exactly the picture some utilities have in mind for us.

As we watch the restructuring of the electric power industry and changes made to give them more flexibility so we can have cheaper rates, the homeowner can't be left to fight for himself. The unprotected homeowner can, over a period of years, be the loser as the large users gain all the benefits. When all is said and done, there must remain some regulatory body with teeth that also can educate the homeowner so he can make wise decisions when selecting his retail power provider.

Very simply, there must remain a strengthened consumer advocate office with a man the quality of the present advocate, Fred Schmidt, at the helm. At the same time, the legislation must require that the power providers don't use dirty plants to compete for business. There's no good reason for Nevadans to become the victims of dirty air because coal-burning plants can produce cheaper power.

During the coming weeks, the wisdom of the Nevada Legislature will be tested severely. Done correctly in a deliberate manner, legislation can benefit Nevada homeowners by providing them with retail power selection and alternatives. Done in haste, like many laws passed in the final weeks of most legislative sessions, it can become a very costly nightmare.