Progress reported at electricity deregulation summit

Wednesday, March 8, 2000 | 10:02 a.m.

CARSON CITY -- Officials say progress was made at Gov. Kenny Guinn's first summit to untangle the problems that are stopping Nevada from entering a new age of electric competition.

However, no decisions were reached at Tuesday's four-hour, closed-door session in Carson City attended by representatives of Nevada's two major power companies, the state consumer advocate, the staff of the state Public Utilities Commission, the gaming and mining industries and the Las Vegas Valley Water District.

Another session is scheduled for March 14 in Las Vegas.

The Legislature allowed the state to open its electric companies to competition on March 1. But Guinn delayed that date, saying the state was not ready to go forward. There were too many issues and he called a summit of the parties involved to talk out their differences.

The governor gave a few opening remarks to the session, attended by about 15 people, and then left. Outside the closed meeting, he said he was disappointed that Nevada could not start up competition on March 1. But he wants to make sure the problems are resolved before anything begins.

"I want there to be competition," he said. The governor added it was not his place to take part in the discussions. But his Chief of Staff Scott Scherer remained in the meeting.

At a break in the session, Scherer said, "They're trading information. It allows them to better understand each others' position."

The tone of the meeting was "positive," Scherer said. "It was a helpful first step to reach a consensus."

William Peterson, attorney for Sierra Pacific Resources, which owns Nevada Power Co. in Las Vegas and Sierra Pacific Power Co. in Reno, said the parties made good progress but it was too early to reach any agreement.

Larry Semenza, attorney representing Las Vegas-based casino operator Mandalay Resort Group, said, "It was a good idea for the governor to call us together."

State Consumer Advocate Fred Schmidt called the session "cordial."

"There was not the posturing as sometimes the parties feel they have to do in public. The way the governor set this up was helpful," he said. Schmidt said this gave the parties a "good chance to air their positions and share their viewpoints on the issues not resolved," to open the door for competition.

Nevada Power and Sierra Pacific have enjoyed a monopoly on supplying electricity to most of Nevada for years.

Even if competition starts, it probably won't affect homeowners immediately. There are few outside companies rushing in to serve small consumer accounts. Instead these alternate sellers are concentrating on getting contracts with big business.

The two major power companies had initially planned to create subsidiaries to sell power to both residential and commercial customers. But they abandoned that plan. But these two utilities are still considered "providers of last resort," meaning they have to serve customers if nobody else will take them.

Sierra and Nevada Power served notice they want to get relieved of that duty.

Not included in the Tuesday meeting were the three members of the Public Utilities Commission, because they will have to approve or disapprove any plan that comes out of the Guinn summit. Also not invited were representatives of alternate sellers, the ones that want to compete with the present utilities. A spokesman for Guinn said they would be invited to meetings in the future.