Leaders say deregulation will get changes in 2001 Legislature

Monday, Oct. 9, 2000 | 4:21 a.m.

But two prominent Democrats say the plan will get much more than just a tuneup by the time it emerges from the next legislative session, which begins in February.

Guinn blocked the door just as some of the biggest electric power users - mines and casinos - were about to have a chance to cut their own deals with power providers. Guinn said he feared Nevadans would be hit with the same huge increases in power bills as California and other states.

Assembly Speaker Joe Dini, D-Yerington, Minority Leader Lynn Hettrick, R-Gardnerville, Sen. Randolph Townsend, R-Reno, and Assemblywoman Barbara Buckley, D-Las Vegas, said Guinn made the right decision.

Townsend said many objected when the state Public Utilities Commission allowed passthrough rate increases even though the 1999 deregulation law included a rate freeze. But without that action, he said Nevada Power could have been in serious financial danger.

"They could either have been acquired in hostile takeover by an out-of-state organization or gone bankrupt," he said.

Hettrick said the law needs some modification to make sure utilities don't get in such financial trouble that they fail.

Dini and Buckley predicted more of an overhaul, saying the small consumer must be protected.

"We've got to take a look at the whole darned thing," said Dini. But he echoed Hettrick's concern that the utilities not be left in financial peril.

Townsend, who chairs the Senate Commerce Committee, said a total review of the 1999 law can't be stopped. But he said lawmakers shouldn't throw out deregulation just because the law needs some repair.

"I don't think reviewing deregulation entirely is necessary or prudent," he said. "The world is going that way whether we like that or not."

Buckley, who objected to the deal with the PUC to allow rate increases despite the legislative freeze, said effects on residential and small business users are the big concern.

"If we go forward with deregulation, we have to have protections for the homeowner - which is what we required to be in place last session and yet it ended up being ignored," she said.

Buckley said the entire deregulation law will have to get a second look, adding, "We're going to be examining all those issues with the goal of making sure we have reliable, affordable electricity in everyone's homes."