Additional debate set on electric restructuring bill

Thursday, May 27, 1999 | 11:24 a.m.

CARSON CITY -- By a 37-3 vote, the Assembly Wednesday moved Nevada closer to the era of electric deregulation, giving consumers a chance to choose their own power supplier.

Assemblyman Doug Bache, D-Las Vegas, said Senate Bill 438 protects customers of Nevada Power and Sierra Pacific Power from any rate increases until March 2003. And consumers will be able to shop around for lower rates in the meantime.

The lone exception to the rate increase will come this summer when Nevada Power asks the state Public Utilities Commission for permission to boost rates by about 4 percent to cover higher fuel costs.

Assembly Speaker Joe Dini, D-Yerington, said a major savings for ratepayers is that the two utilities will not be able to get higher rates, even if their fuel costs rise.

"They (the utilities) gave up deferred energy and that's a significant savings to the ratepayers," he said.

The bill returns to the Senate, which may not agree to Assembly changes.

Sen. Randolph Townsend, R-Reno, said the bill would probably go to conference committee to examine three or four items the Assembly placed in the bill. For instance, he said the Assembly may have upset a provision in which all contracts that are in force now with utilities will continue.

Townsend said, "They changed it because of one whiney lobbyists," who he refused to identify.

The bill also permits the two major utilities to use their current names when they set up affiliates to branch out into other businesses. That had been a major point of contention from heating and air conditioning contractors of Clark County who say this will hurt their business.

Assemblyman Tom Collins, D-North Las Vegas, said many businesses feel they will not be protected. And he said his electrical business could be in jeopardy.

Assemblyman Lynn Hettrick, R-Minden, who supported the bill, said there is no rate protection under the present law. And this bill will shield consumers. "I hope there will be meaningful competition in three years."

This bill won't become effective unless the planned merger of Nevada Power and Sierra Pacific goes through. The utilities, once combined, plan to sell their generating plants and concentrate on distributing the electricity to customers.