Friday, April 3, 1998 | 10:06 a.m.
The restructuring of the natural gas industry, the third of three industries legislators ordered to a competitive environment last year, moved forward Thursday.
The Nevada Public Utilities Commission approved a draft order on distribution companies and alternative sellers.
The action, which followed several weeks of hearings on the "unbundling" of natural gas services, lists nine areas within the industry in which energy companies can compete.
Unbundling is the process of identifying which services previously operated by monopolies could be sold on a competitive basis. The same process is occurring in the state for the electrical industry which, along with telecommunications, is part of a massive utilities restructuring ordered by the Nevada Legislature last year.
The commission considered the order after soliciting 125 pages of testimony from interested parties at workshops and hearings over the past two months. Two companies wanted a greater delineation of the unbundled products, but the commission decided not to further subdivide the nine categories.
The list of nine unbundled services: gas supply and related products, retail procurement service, pipeline transportation and related products, distribution service, end-use metering, customer accounting, marketing and sales, public good services and behind-the-meter surfaces.
By listing and defining the unbundled services, the commission now will be able to field inquiries and oversee a new era of competition for gas services, dominated locally by Southwest Gas Corp.
Among companies that have expressed interest in entering Nevada's competitive market are the Houston-based Enron Corp., which also has been a part of electricity restructuring discussions and has explored the possibility of developing solar energy in the state. Enron led the lobbying effort to further divide list of unbundled services.
With the unbundling effort near completion, the Public Utilities Commission will turn its attention to establishing licensing regulations for gas companies. That process is expected to be completed by Jan. 1.
Competition in the electricity industry is expected to be completed by Jan. 1, 2000.
archive
