Letter: Nevada can avoid power problems of California

Thursday, Aug. 17, 2000 | 9:32 a.m.

A major source of California's electricity rate increases is that natural gas prices have increased greatly along with other fuel prices.

Natural gas is the fuel used by generating plants built to meet peaking electricity demand and has become increasingly popular for small generating plants built to meet base electricity load.

While the jury is still out on the degree to which the California system is being gamed by suppliers, it is clear that the economics of the Western states have grown to absorb much of what had been excess generating capacity in the region.

Southern Nevadans, who have received increasing amounts of their power from an interstate wholesale market, should not be led to believe Nevada can comfortably wait out the developments on the other side of the state line.

Nevada needs to open its markets in order to stimulate construction of power plants that will ultimately help mitigate any spillover effects.

Nevada will not open its markets with the same framework that California did. There will be more room to fine tune our framework as we go along.

Nevada needs to stay the course on its electric restructuring effort or Nevadans will be made more, not less, vulnerable to suffering long-term effects from California's unpleasant experience.

RICHARD M. MC INTIRE

Member, Public Utilities Commission