Nevada Power threatens suit to protect use of its name

Thursday, Oct. 22, 1998 | 11:46 a.m.

Nevada Power says it may go to court if the Public Utilities Commission of Nevada prevents the company from using its name when the electrical power industry is restructured.

In a briefing on the status of restructuring on Wednesday, Nevada Power turned up the heat on the PUC by telling a media audience where the company stands on several issues commissioners will consider in hearings over the next five weeks.

Commissioners are in the process of drawing rules competitors would abide by when competition begins on Jan. 1, 2000.

Among the topics: proposed power company affiliate rules that would prohibit Nevada Power from using its identity if it becomes a service provider in the new era of competition.

The company plans to be one of the providers through an affiliate, but wouldn't be able to use its corporate logo in any literature. The affiliate would only be allowed to explain its relationship to the parent company with a disclaimer.

The PUC has said Nevada Power would have an unfair advantage over competitors because of its vast name recognition as a monopoly. Allowing the monopoly utilities to use those familiar names could doom competition before it even begins, PUC officials maintain.

Nevada Power says using its corporate name and logo to establish the identity of affiliate companies, including disclaimers to avoid confusion as to how they are regulated, would be valuable to consumers who have to make a decision on a provider.

The company also believes potential rivals -- especially those based in Southern California and have name recognition among Nevadans who have moved from there -- would seize the competitive advantage under the current proposal.

The PUC has revised its proposals on affiliates and simplified the text of the disclaimer, but Nevada Power says the current draft still handicaps the Las Vegas-based company.

Dwight Etheridge, leader of the industry restructuring team for Nevada Power, said the company's management feels strongly enough about the issue that it would consider taking the matter to court if the rules prevent Nevada Power from using its name.

Other states that are dealing with deregulation issues are split over the issue, PUC officials say. Most states are allowing monopolies to use their names.

Another issue with which Nevada Power disagrees with the PUC is on how customers who don't choose an electrical service provider by the deadline will be served.

Under the proposed PUC rules, companies offering service would be required to bid for the right to serve those who don't choose.

Nevada Power believes consumers should have the right not to choose a new provider. The company believes that by not choosing, a customer is supporting the status quo and that Nevada Power should be allowed to continue to serve them.

Etheridge said Nevada Power stepped up its role as an advocate for its own position in Wednesday's briefing because the PUC is close to making important decisions on rules. He acknowledged the company also is watching out for the interests of Nevada Power shareholders.