PUC shakeup removes two more top officials

Monday, July 19, 1999 | 10:21 a.m.

CARSON CITY -- The shakeup continues at the state Public Utilities Commission with the firing of two top officials with ties to former Chairwoman Judy Sheldrew, who was demoted last week by Gov. Kenny Guinn.

Despite her loss of the top job on Tuesday, which she held for two years, Sheldrew said will serve out her term, which expires in September 2001.

But on Thursday, Commission Secretary Jeanne Reynolds, who has been with the agency for more than 25 years, was given her walking papers by newly-installed Chairman Don Soderberg. Reynolds, who earns $70,000 a year, said she was not given any reason for her dismissal and was given five days to clean out her desk.

On Friday, Sharon Thomas, director of regulatory operations, was also given five days' notice and no reason why she was being let go from her $79,310 a year job, which she had held for more than two years. She has been with the commission for seven years.

Soderberg said he would "not confirm or deny" there were staff firings within days after he took over. "I'm in the process of taking a look at personnel and policy issues. We will be making an announcement in about one week."

When Guinn elevated Soderberg, a former Reno attorney, the governor talked about new directions in the commission that regulates electric, natural gas, telephone and water companies. Asked about this, Soderberg said the three-member utilities commission makes the regulatory policy, not him alone.

But Soderberg makes the decisions on administrative matters such as staff.

Sheldrew, whose salary fell from $86,084 to $80,000 as a commissioner, said Friday it was "the governor's prerogative to appoint whomever he desires as chairman of the commission to oversee the direction he wants the commission to go. And I must accept his decision."

In a prepared statement, she said, "After 25 years in state government, I certainly understand politics."

"When I was first appointed to the Public Service Commission (the former name of the utilities commission) by Gov. Bob Miller, he expressed confidence that I would be a watchdog for the ratepayers of Nevada.

"Since that time, I certainly tried to protect ratepayers and will vigorously continue to do so until the expiration of my term in 2001."

Sheldrew has been the most controversial member of the utilities commission, clashing with fellow members. But she has also handled many of the major cases. And she has taken the lead in getting Nevada ready for the era of allowing competition among electric companies, which starts next March. She has also presided over the pending merger of Nevada Power Co. of Las Vegas and Sierra Pacific Resources of Reno.

The Guinn administration ordered Sheldrew not to attend the Legislature, which was fashioning a new law on opening competition to power companies. She had privately expressed doubts that the bill being drafted protected ratepayers in the era of deregulation.

The law was changed to allow Guinn, not the PUC, to decide when electric competition should begin. The proposed starting date is March 1, but the governor will be able to alter that.

Soderberg and Sheldrew have not seen eye to eye in the past. When the utilities commission was created in 1997, Sheldrew was named chairwoman and Soderberg was transferred by Miller to the newly created state Transportation Authority.

When Commissioner Tim Hay resigned last December over disagreements with Sheldrew, Soderberg was transferred back to the utilities commission by Miller. And Guinn endorsed the move.

Sheldrew started to work in state government in 1973 after her graduation from the University of Nevada, Reno. She worked her way up to state budget director under Miller and became one of the most powerful persons in government.

It was her job to tell state executives "no" when they asked for more money or new programs. And on occasion she publicly criticized those she thought had failed to measure up to the job.

After her appointment to the commission in 1993, she often clashed with other members. She had a running feud with then Chairman John Mendoza, who was transferred to the chairmanship of the Transportation Authority in 1997. She then was elevated to head the reorganized and renamed utilities commission.

She and Commissioner Galen Denio didn't see eye to eye and he resigned. Then last December, Hay quit the commission.

In a move unrelated to the upheaval, the commission named Cynthia Messina as public information and education officer. Messina, who formerly worked for Nevada Power Co., replaces Kathy Kollar, who had resigned the $50,000 a year job.

Soderberg said Messina's "knowledge of the utility industry, coupled with her government and public affairs background, will enable her to communicate the commission's message effectively on a variety of issues."

She worked with former Sen. Bill Bradley of New Jersey and with the U.S. Department of Defense on various political and informational campaigns.