Assembly approves electric restructuring bill

Thursday, May 27, 1999 | 9:23 a.m.

The measure, passed Wednesday, returns to the Senate for concurrence.

The Nevada electric market will be deregulated next year on March 1. On that date, consumers will be able to choose their utility company from any that enter the market.

Currently, Nevada residents have only two choices: Nevada Power in the south or Sierra Pacific Power Co. in the north.

The bill includes a cap on electric rates for the first four years for residential consumers. It also allows current utility companies to lend their names to affiliated companies that want to sell power and other services in Nevada.

Although SB438 passed overwhelmingly, supporters conceded it's not all things to all people.

"In the future, we have to hope the competition does what it's supposed to do and brings relief to the ratepayers of Nevada," said Assemblyman Lynn Hettrick, R-Gardnerville.

"We have some concerns that nothing will protect everyone. But this bill will give the opportunity to give them four years of protection," he added, referring to the rate cap intended to ease consumers into the competitive market.

The rate cap would be effective only if a merger between Nevada Power and Sierra Pacific is completed.

The bill also allows the two companies to avoid having their customers auctioned off to the highest bidder. The state Public Utilities Commission wanted to auction off blocs of customers to attract new companies to the residential market.

The agreement was worked out by the two major electric providers, the PUC, the state's consumer advocate and lawmakers after months of testimony in both houses of the Nevada Legislature.