Electric utility cases stalled at PUC

Wednesday, Jan. 12, 2000 | 12:13 p.m.

Pending the appointment, PUC Chairman Don Soderberg on Tuesday delayed until Jan. 20 a decision on a key element that could help open the door for new electric companies to supply Nevadans with power.

Guinn's chief of staff, Scott Scherer, said a likely candidate to temporarily take the PUC job has been out of the country but was due back late Tuesday. He said he hopes the person will decide in a day or two whether to take the commissioner's job temporarily.

The acting commissioner would replace Commissioner Richard McIntire, who has been disqualified in the merger case of Nevada Power Co., and Sierra Pacific Power Co., and also in the $100 million rate increase application of Nevada Power Co.

Those must be decided before competition can begin. And Soderberg and Commissioner Judy Sheldrew are split on those two issues.

It's up to Guinn to decide whether the market is ready to open on March 1. And it appears the self-imposed deadline may not be met.

The PUC postponed an expected Tuesday decision on whether Nevada Power and Sierra Pacific were adhering to terms of their merger. And part of that decision involved things that were to take place before open competition arrives.

Adding fuel to the controversy was McIntire's letter last week to the Las Vegas Sun, accusing Sheldrew of being "inflexible" in wanting to start competition on March 1.

Sheldrew was demoted from PUC chairwoman by Guinn. And there were reports Guinn officials wanted to replace her but couldn't before her term expires next year.

Sheldrew has been a prime mover of the open competition plan. In December, Sheldrew wrote Guinn telling him, "There should be no reason the March 1, 2000 deadline should not be met if competent and timely actions are taken."

She made public that letter on Tuesday, which said things were progressing while she was presiding over the case. But she was removed by Soderberg. And since then she has accused Soderberg of dragging his feet on bringing forth issues on which to vote.

Soderberg said he doesn't want to make mistakes in this major changeover of the electric industry in Nevada. And he said he wants to get the issue settled.

The governor had asked each commissioner for their views on whether the March 1 deadline could be accomplished. Sheldrew replied, "I have never wavered in the belief that competitive electric markets with the proper consumer safeguards and protections against anticompetitive behavior are in the public interest.

'I believe much of the work that has been completed has put those safeguards and protections in place. I share your hope that the opening of Nevada's electric markets to competition not be delayed beyond March 1, 2000."

Former PUC Commissioner Michael Pitlock, who had also been involved in the open competition case, was replaced on the commission by McIntire in late November. But before he left, he wrote the governor, telling him a delay "is neither necessary nor in the public interest."