Guinn delays decision on dereg again

Brendan Riley

Wednesday, Sept. 27, 2000 | 9:11 a.m.

CARSON CITY - Gov. Kenny Guinn has again delayed a decision on whether to postpone electrical utility deregulation so that Nevada lawmakers can review the issue next year.

Guinn was expected to make his decision by midweek, but said Tuesday he's put it off until the middle of next week so that he can have more discussions with mining and casino interests that will be affected by deregulation.

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

Guinn also repeated his view that Nevada's 1999 law on deregulation, which called for a temporary rate freeze, hasn't been broken despite some recent rate hikes.

Guinn has said that until he gives his word, the 1999 law doesn't really take effect - and so there's no way it could have been broken.

Guinn's comments Tuesday followed a Legislative Commission meeting on Monday where key Nevada lawmakers, backed by a Public Utilities Commission member who just quit, accused other PUC members of breaking the utility deregulation law.

Assistant Assembly Majority Leader Barbara Buckley, D-Las Vegas, accused PUC Chairman Don Soderberg and panel member Richard McIntire of "revisionist history" as they defended the commission's recent approval of rate hikes.

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

As the legislators bickered with the commissioners, 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.

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.