Henderson clears way for local power services

Shaunta Grimes

Thursday, Oct. 21, 1999 | 10:56 a.m.

The Henderson City Council passed an ordinance Tuesday night that opens the way for the city to provide electrical services to its residents once the utility industry is deregulated.

"This is the first step for the council to set the stage to form a municipal utility district," Wayne Robinson, chief of utility services for Henderson, said.

The city already provides sewer and water services to residents.

Henderson has always had the ability to form a utility district for electrical service. According to Henderson, the change in the ordinance simply clarifies that ability -- the decision on whether to form an electrical utility district has not been made.

The upcoming March 1 deregulation of electrical services was a catalyst for the ordinance, Robinson said.

"Power issues are on people's minds right now," he said.

Nevada Power provides the city of Henderson with power at the cost of 6.8 cents per kilowatt hour for residential customers and varying rates for businesses, Thomas Moore, spokesman for Nevada Power, said.

Moore said Nevada Power doesn't want to lose any customers, but if Henderson chooses to become a competitor Nevada Power will survive. Nevada Power owns all the power lines and substations.

Nevada Power Co. as it currently exists won't offer power services anymore. It will create a subsidiary called Nevada Power Services to do that. However, every new company that offers services will pay to use Nevada Power Co. lines and substations, Moore said.

Nevada Power will be required by the Nevada Public Utilities Commission to freeze its rates for three years after the March 1 deregulation.