Editorial: Governor should call a timeout

Friday, Sept. 15, 2000 | 9:38 a.m.

Democratic leaders in the Nevada Legislature are asking Republican Gov. Kenny Guinn to once again postpone electric industry deregulation. But Guinn is in a tough spot since casinos and other powerful interests want him to begin deregulation. He expects to announce by the end of this month whether he will allow deregulation to start Nov. 1. Guinn should heed the legislators' advice and call a timeout.

Senate Minority Leader Dina Titus, Assembly Majority Leader Richard Perkins and Assistant Majority Leader Barbara Buckley argue that a central part of the deregulation law, a three-year rate freeze, has been ignored. The state Public Utilities Commission recently approved a rate hike, which also included the resolution of a legal challenge by the electric companies that sought to overturn Nevada's deregulation law. The Democrats contend that the decision could result in rates increasing as much as 64 percent over the next 30 months. And unlike the large companies that could look for cheaper power starting in November, the settlement approved by regulators prevents residential customers from shopping for power until September 2001.

Meanwhile, the first city in the nation to experience electric deregulation, San Diego, has undergone a crisis as electric bills have skyrocketed there. There is confusion and still little understanding as to what deregulation actually will entail. Guinn should gather more input from experts, and consult the Legislature while it's in session, before the state goes down such an uncertain path. This doesn't mean that deregulation should be permanently derailed, but Nevadans aren't quite ready yet for this leap into the unknown.