Nevada Power parent pulls out of Guinn’s summit

Wednesday, April 26, 2000 | 10:54 a.m.

CARSON CITY -- Gov. Kenny Guinn's task force on deregulating the electric industry plans another session for Friday but Sierra Pacific Resources Inc., one of the key players, won't be there.

Doug Ponn, vice president of governmental and regulatory affairs for Sierra Pacific, confirmed it won't be sending any representatives because of pending lawsuits.

Scott Scherer, Guinn's chief of staff, said those participating in the closed-door session in Carson City will be giving an update on the obstacles that remain to be cleared before the electric market can be opened to competition.

Sierra Pacific has filed suit in federal court challenging the validity of the deregulation law. And Nevada Power Co., a subsidiary of Sierra Pacific, has sued in District Court in Carson City to force the state to approve a rate increase of $110 million.

Guinn won't be present but Scherer said he will represent the governor. The session is closed, Scherer said, to encourage "people to be as frank as possible, so they do not feel they are jeopardizing their cases."

Assemblywoman Barbara Buckley, D-Las Vegas, had earlier called for the sessions to be open to allow the public to know what is being talked about in private. The two previous meetings were closed.

The Nevada Legislature allowed Guinn to open the electric market March 1 to permit other companies to compete with Nevada Power Co. in Las Vegas and Sierra Pacific Power Co. in Northern Nevada in supplying electricity to customers.

Guinn, however, delayed deregulation, saying all the issues have not been decided. And he called a summit for those involved to discuss the issues and try to resolve the disputes. One of the issues was how much, if anything, Nevada Power was entitled to from its two electric rate increase filings.

The parties could not reach agreement. The state Public Utilities Commission, on a 2-1 vote, rejected any increase for Nevada Power and instead ordered a slight reduction in rates.

Scherer said representatives of the staff of the utilities commission, the consumer advocate, Las Vegas Valley Water District and the mining industry have confirmed they will attend the Friday session.

One issue to be discussed is whether the suits by the utility will prevent the state from moving forward with deregulation. Scherer noted that in the federal court suit, Sierra Pacific is asking for an injunction to stop the law from becoming effective.