River board budget hike approved for power costs

Tuesday, Dec. 5, 2000 | 10:41 a.m.

CARSON CITY -- The Legislative Interim Finance Committee Monday approved an application by the Colorado River Commission to boost its budget $27 million to pay for the increased cost of power that is supplied to the Southern Nevada Water Authority.

Lawmakers expressed concern that the CRC was vying with private industry in the sale of this energy. Assemblyman Richard Perkins, D-Henderson, said the CRC is in "strong competition" with Nevada Power Co.

Assemblyman Lynn Hettrick, R-Gardnerville, wondered if Nevada Power might supply the electricity cheaper to the water authority, which uses it to pump water into Las Vegas.

Douglas Beatty, chief of finance and administration for the CRC, said it now sells the water authority the power and the price could triple within two years. It buys the power from various sources like Duke Power Co., ENRON and Idaho Power. It is then sold to the water authority at the purchase price, plus administrative fees.

Hettrick said, "How do we know Nevada Power can't do it for less? They are dealing in the same market."

But Sen. Joe Neal, D-North Las Vegas, said the CRC charges the cheapest rate. "They are getting a bargain" in their purchases, he said.

To force the water authority to buy electricity through Nevada Power would mean "deep trouble," for the consumers who would end up with higher water bills, Neal said.

Beatty said the water district needs more power. And if the committee did not approve the increase in the budget authorization, the water district would have to find another supplier, like Nevada Power.