Editoria: Deregulation gets off to a rocky start

Sunday, Sept. 26, 1999 | 9:26 a.m.

Advocates of deregulation argue that electric company customers should eventually see price savings. It is hoped that this economic principle materializes, but so far it is understandable if Las Vegans are having jitters. Electric rates will be frozen for three years, but as the Sun's Cy Ryan reported last week, state regulators found that Nevada Power Co. is earning $14.2 million in excess profits annually -- yet it will be able to keep these profits without passing them on to consumers.

Existing monopolies argue they need this extra money to prepare for competition. While three new electric companies plan to offer residential service, so far just one has gotten state approval -- even though competition begins March 2000. Some already may be yearning for the good old days of regulation where excess profits were returned to customers in the form of lower rates.

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