Ex-PUC member to become consumer advocate

Wednesday, March 29, 2000 | 11:01 a.m.

CARSON CITY -- Tim Hay, the newly appointed state consumer advocate, says his major goal will be protecting the freeze on power rates for homeowners when Nevada opens its electric market to competition.

Hay, 45, a former member of the state Public Utilities Commission, Tuesday was named by Attorney General Frankie Sue Del Papa to replace Fred Schmidt, who is going into private law practice.

"There's been some effort to find ways around the freeze," Hay said. "We must protect the integrity of the freeze."

Hay will earn $84,596 in the job as director of the Bureau of Consumer Protection in Del Papa's office. He takes over April 10.

The 1999 Legislature permitted open competition in the power industry to begin March 1. But Gov. Kenny Guinn has delayed the start-up because of unresolved problems.

Hay said he did not expect homeowners and small commerical customers to benefit immediately from deregulation because most of the new alternative sellers of electricity are going after the big power users such as mines and resorts.

The Legislature imposed a three-year moratorium on rate increases for homeowners so that the small consumer would not be hurt initially when the market opens.

"During this time of transition to competitive markets, protecting Nevada consumers will remain essential in ensuring that the benefits of competition reach residential customers and small commercial customers as well," Hay said.

Hay has served in a variety of government jobs. He worked as a deputy attorney general from 1979 to 1983 and he then became legal counsel for Gov. Richard Bryan from 1983 to 1987.

Hay was then named state budget director and then followed Bryan back to Washington, D.C., when Bryan was elected to the Senate. He was Bryan's legislative counsel from 1989 to 1994. He returned to Carson City where he became legal counsel for the utilities commission and eventually was appointed by Gov. Bob Miller as a commissioner.

As a commissioner he presided over energy and environmental cases as well as investigations into whether Nevada's utilities were ready for the Y2K computer switch. He also handled telecommunications cases.

Hay resigned from the utilities commission in January 1999 after reportedly having disagreements with fellow Commissioner Judy Sheldrew. Most recently, Hay has been a consultant for Navigant Consulting, Inc., a management firm specializing in utility restructuring issues.

"Tim's background of working directly with the Public Utilities Commission and utilities gives him an incredible insight into the relationships those groups must have in making sure all Nevadans receive quality services at reasonable costs," Del Papa said.

He is a graduate of the University of Nevada, Reno, in 1976 and received his law degree from the University of San Diego School of Law in 1979.