Nevada legislator, Guinn seek speedier approval for new power plants

Monday, Oct. 2, 2000 | 11:11 a.m.

CARSON CITY -- In an effort to increase Nevada's electricity supply and lower rates to consumers, Senate Minority Leader Dina Titus wants to shorten the time for approval of the construction of power plants.

"One thing I keep hearing why prices are going up in Nevada and California is there is a lack of power out there -- we need more generators," said Titus, D-Las Vegas, who has asked for a bill to be drafted for introduction in the 2001 Legislature.

"So a bill like this would be good for business and good for consumers because it would allow generators to be built.

"And it there is more of a supply out there, it should bring the cost down," said Titus, who has been a major critic of the so-called "global settlement" that could open the electric market to competition in November for the big casinos and other large businesses in Las Vegas. It also permits monthly rate increases for Nevada Power Co. to recover higher costs it pays for fuel and purchased power.

Her bill is patterned after similar legislation in California to speed up the government permit process. She estimates it now takes two years go jump through the various government hoops. Her legislation would shorten that to six months.

And she said there would still be protection of the environment with this expedited review process by state officials. The power plants being proposed for Southern Nevada would be fired by natural gas, which is less harmful to the environment than coal, she said.

While Titus and Gov. Kenny Guinn disagree on many things, they sing the same song on issue. Guinn said last month that the nation has got to start producing more power generation. Rising prices are the result of the shortage of power capacity, said the governor.

Nevada, he says, would be a good location for these plants and a number of companies are interested.

Meanwhile Guinn is expected to announce his decision this week whether to allow deregulation to go forward Nov. 1. He has been talking with the utilities, gaming representatives, the state Public Utilities Commission, Consumer Advocate Tim Hay, mining interests and alternate sellers of electricity.

Michael Pitlock, a former member of the Public Utilities Commission and now an independent energy consultant, says Guinn should permit deregulation because allowing competition is a way to combat high prices.

"Opening the markets will send the right signal to the builders of new power plants that they should build their plants here and that retailers should come here to serve customers because of the competitive services that they will be able to offer customer," he said.

"Uncertainty and hesitation will serve only to discourage new power plant construction and commitments by retailers -- what business will commit precious thousands or millions to an unstable market?" asked Pitlock, who represents Shell Energy Services, which wants to come into Nevada to serve residential customers.