Lawmakers fight with Guinn administration over dereg, commissioner quits

Brendan Riley

Monday, Sept. 25, 2000 | 5:16 a.m.

CARSON CITY, Nev. - Key Nevada lawmakers, backed by a Public Utilities Commission member who just quit, accused other PUC members on Monday of breaking state law on electrical utility deregulation.

"This is nothing but revisionist history," Assistant Assembly Majority Leader Barbara Buckley, D-Las Vegas, said as PUC Chairman Don Soderberg and panel member Richard McIntire defended the commission's recent approval of rate hikes.

Senate Minority Leader Dina Titus, D-Las Vegas, joined in the criticism, repeating her earlier argument that the PUC bought into a "backroom deal" and ignored a rate freeze that was a key part of a 1999 deregulation law.

"We have a law on the books. You just can't ignore the law," Buckley said during a Legislative Commission meeting.

As the legislators bickered with the commissioners, Gov. Kenny Guinn got a resignation letter from Judy Sheldrew, the third member of the PUC and the only one to object to a settlement that led to the recent utility rate increases.

In her letter telling Guinn she was leaving her $82,000-a-year post, Sheldrew said the PUC "has exceeded its authority and directly contravened the law in approving the settlement."

The July agreement has resulted in rate hikes for customers of both Las Vegas-based Nevada Power customers and Reno-based Sierra Pacific Power, effective in November. And critics say more increases are likely.

Guinn says he'll decide by Wednesday or Thursday on whether to delay electrical utility deregulation so that Nevada lawmakers can review the issue during their regular session next year.

The GOP governor also said Saturday that the 1999 law on deregulation hasn't been broken despite the rate hikes. That's because the 1999 law can't take effect until he gives the word, Guinn reasoned.

PUC representatives made the same argument during Monday's Legislative Commission meeting, in response to questions from the panel's chairwoman, Sen. Ann O'Connell, R-Las Vegas.

The governor already delayed an initial March start-up date for deregulation, and has been considering a Nov. 1 start-up.

Titus said that no matter what Guinn does, the 2001 Legislature will review the deregulation issue. And Buckley said Nevadans don't want big rate increases of the sort that hit San Diego residents this year under neighboring California's deregulation scheme.

The discussion preceded a Legislative Commission decision to delay action on a deregulation-related rule that was up for its review.