Guinn names energy deregulation panel

Brendan Riley

Monday, Oct. 30, 2000 | 4:48 a.m.

CARSON CITY - A special panel was named Monday by Gov. Kenny Guinn to produce a long-term energy policy that's needed before electric utility deregulation can start in Nevada.

Guinn had announced plans to form the energy policy committee on Oct. 4, when he decided against deregulation now because of concerns that an uncertain market could mean huge power bills for Nevadans.

JoAnn Kelly, a former state Public Utilities Commission member, was named as chairwoman of the 17-member committee. Other members include representatives of utilities, local governments, casinos, mines, consumers and the state legislature.

Guinn said the goal is to implement deregulation in early 2001. Deregulation was originally supposed to begin last March.

Las Vegas-based Nevada Power Co. and Reno-based Sierra Pacific Power are the only power companies serving Nevada.

Deregulation would open the market to competition. Big casinos, the water district in Las Vegas and homeowners could shop around for alternate suppliers and better rates.

Some lawmakers had encouraged Guinn to delay deregulation, fearing residential consumers wouldn't be protected in an open market.

Others want the Legislature to again take up the contentious issue when it convenes in February 2001. They say a settlement reached this summer by the power companies, the Public Utility Commission, Attorney General's Bureau of Consumer Protection and three major casino operators violated the law while protecting utilities and major power users.

Guinn, a former president of Southwest Gas Corp., had said too much is unknown about deregulation and how it would affect Nevadans. He's concerned customers would see a dramatic increase in their power bills because of what he called a nationwide energy crisis.

The governor doesn't want a repeat of what happened to electricity customers in San Diego, where the local utility was the first to become fully deregulated under a 1996 law.

Customers experienced a doubling and tripling of rates since May after San Diego Gas and Electric Co. passed on increases in wholesale costs to its customers.