Democrats ask Guinn to delay electricity deregulation

Tuesday, Sept. 12, 2000 | 11:01 a.m.

CARSON CITY -- Three legislative leaders today urged Gov. Kenny Guinn to delay opening the electric industry to competition until there are protections for homeowners, who they say could face an increase of up to 63 percent in their power bills in the next three years in Clark County.

Senate Minority Leader Dina Titus, D-Las Vegas, Assembly Majority Leader Richard Perkins, D-Henderson and Assistant Majority Leader Barbara Buckley, D-Las Vegas, said any move to deregulate electrical utilities must include safeguards against skyrocketing power bills for residences, apartments and mobile homes and small business.

Guinn has said he will make a decision by the end of this month whether to permit open competition starting Nov. 1 to allow big users in Southern Nevada, such as casinos and the Las Vegas Valley Water District, to shop around for their electricity. The market for homeowners would not be open until September next year under an agreement approved by the utilities, casinos and the state Public Utilities Commission.

Jack Finn, the press secretary for Guinn said, "The governor is continuing to gather as much information on this important issue as he can with the interest of residential ratepayers absolutely at heart." And Finn said the governor is willing to meet with the trio to discuss their concerns.

The three Democratic lawmakers said a 1999 law included a cap on rates for residential users until 2003. But the settlement allows Nevada Power and Sierra Pacific Power to raise rates every 45 days to offset the higher cost of fuel or purchased power. So far, Nevada Power has given notices for a 7 percent increase in rates.

Titus, Perkins and Buckley said this agreement ignores the law and these consumer protections. And they questioned whether the utilities commission could disregard legislation approved by the 1999 session. The utilities commission voted 2-1 to accept this agreement hammered out behind closed doors by the utilities, casinos and the staff of the utilities commission.

"A majority of the members of the houses of the Legislature -- elected by the people -- approved a measure last year that clearly included a rate freeze for residential customers for three years. That provision of the law is being completely ignored," the trio said.

Titus said the increases now are automatic without any prior review by the utilities commission. She said there should be a quasi-freeze. The commission should be able to study the rate request to see if it is justified before it goes into effect.

This is the procedure used under the old law, where prior approval was required.

Titus also said everybody should be able to free to shop for new power suppliers at the same time. It's not fair to the homeowner and small business, she said to allow the big companies to seek lower rates while the others face rising costs.

Titus also called for the utilities commission to spend money on a public information program about this complicated problem. She said the commission has money in its budget but hasn't spent it.

The three lawmakers said if the rate freeze is ignored by regulators, "the entire deregulation plan needs to be revisited by the 2001 Legislature," which convenes in February.

"We don't want to see problems like the ones they are facing in San Diego happen here," they said. "We are asking the governor to put deregulation on hold until we can make sure that the people we represent, the people he represents, can be protected."

In San Diego rates doubled in a short time after full deregulation went into effect.