Guinn names members of energy policy committee

Tuesday, Oct. 31, 2000 | 10:47 a.m.

Oregon deal

The Oregon Public Utility Commission on Monday formally approved Reno-based Sierra Pacific Resources' $3.1 billion acquisition of Portland General Electric.

In approving the purchase from Houston-based Enron Corp., the commission concluded the acquisition is in the public interest, in line with state law.

"We approved this based on guarantees that rates will not increase as a result and customer service will not suffer, and that prior PGE investments in renewable resources will be maintained," Commissioner Roger Hamilton said.

Sierra also needs approval from the Federal Energy Regulatory Commission.

Portland General serves 700,000 customers including residents of Portland and Salem.

CARSON CITY -- JoAnn Kelly, named by Gov. Kenny Guinn as chairwoman of his newly created Energy Policy Committee to unravel the electric deregulation jigsaw puzzle, is getting off to a fast start.

Kelly, a former 10-year member of the state Public Service Commission, which later became the Utilities Commission, has set the first meeting for Thursday in Las Vegas.

On Oct. 4, Guinn decided against opening the electric industry to competition, saying the state lacked a comprehensive energy policy. The governor Monday named 17 people to the policy committee to recommend a long-term energy plan and to advise him when deregulation should begin.

Kelly said there will be meetings every Thursday, except for Thanksgiving, in an effort to complete its work by early next year.

Sen. Randolph Townsend, R-Reno, also a member of the policy committee, applauded the agenda of meeting once a week because, "We have such a short time. I like her (Kelly's) style."

Kelly retired from the public service commission just as Nevada started to look into the issue of deregulating the electric issue. Guinn called her back to sit on the commission when member Richard McIntire was ineligible to vote on certain electric issues.

Kelly voted for a $44 million deferred energy cost rate increase for Nevada Power Co., but was on the losing side of a 2-1 vote. She later voted in the majority for the so-called "Global Settlement" that permits periodic increases for Nevada Power and its sister company Sierra Pacific Power Co.

The settlement also called for the markets to be open Nov. 1 for the big users in Southern Nevada and for all customers in September next year. But Guinn decided to delay the start of deregulation.

The first task of this new policy committee, Kelly said is "to assess the needs of electric energy ... see how much is available... and make recommendations on how we can maintain and get and satisfy those needs."

"The whole committee is going to get information where the West stands on supply and the market," she said.

The policy committee won't have any of its own staff. But the staff of the public utilities commission has been made available to help with the work, Kelly said. In addition, many of the members have their own staffs.

Others named to the policy committee are Assembly Majority Leader Richard Perkins, D-Henderson; Bill Bible, president of the Nevada Resort Association or his designee; Walt Higgins, chief executive officer of Sierra Pacific Resources, which is the parent of Nevada Power Co. in Las Vegas and Sierra Pacific Power in Reno and state consumer advocate Tim Hay.

The governor also named Pat Mulroy who heads the Southern Nevada Water Authority; Michael Maffie, president and chief executive officer of Southwest Gas Corp. of Las Vegas; Cloyd Phillips the executive director of the Community Services Agency in Reno; Tim Cashman, a Las Vegas businessman and member of the Las Vegas Chamber of Commerce, and Brian Ayala, a Las Vegas businessman and member of the Latin Chamber of Commerce.

Others are Terry Graves, alternative energy representative; Russ Fields of the Nevada Mining Association; Max Jones of the Nevada League of Cities; LeRoy Goodman, a Lyon County commissioner and a member of the Nevada Association of Counties; Ernie Nielson of the Washoe County Senior Law Project and Ron Burch, president of Far West Capital and operator of a geothermal power plant in Washoe County.

Townsend, who headed the Senate Commerce and Labor Committee that played a major role in drafting the deregulation law, said one priority is getting new power plants built in Nevada as soon as possible without damaging the environment.

There have been plans already announced in Southern Nevada for three natural gas-fired merchant plants that will sell power on the open market. During the interim, which will be about three years, Townsend said Nevada can depend on geothermal energy, one of the "greatest sources" the state has.

Kelly said "We've got a lot of good minds," in the policy committee. She said the wider participation, the bigger chance of success by the panel.

The meetings will be at the offices of the state Public Utilities Commission in Las Vegas and be beamed to the offices of the agency in Carson City.

This will be Guinn's second effort to get the electric deregulation system going.

The 1999 Legislature passed a bill allowing Guinn to open the market in March. But he said Nevada was not ready. He called for a summit but discussions broke down.