Guinn may have final say on power

Tuesday, April 3, 2001 | 11:02 a.m.

CARSON CITY -- A bill before the Legislature would give Gov. Kenny Guinn, not the Public Utilities Commission, final say over whether Nevada's two major public utilities could sell their generating plants.

This new power for Guinn is included in the latest version of a divestiture bill before the Senate Commerce Committee. But there's disagreement over whether Guinn or his office sought this authority. This new re-write was hammered out over the weekend in private meetings and is the latest wrinkle in the long-delayed decision on stopping the sale of the plants.

Sen. Ray Shaffer, D-North Las Vegas, asked casino lobbyist Harvey Whittemore Monday where language giving Guinn veto power over any sale came from. Whittemore told the committee Monday it emanated in the governor's office.

But Marybelle Batjer, chief of staff for Guinn, later denied that the governor or his staff had ever suggested the increased power for the chief executive. She said Guinn has not asked for this authority "but can live with it."

Batjer admitted governor's office staff members attended these meetings over the weekend. But she said they never offered this amendment, which would allow the governor to review any approval by the Public Utilities Commission to permit Nevada Power Co. and Sierra Pacific Power Co. to sell their generating plants starting in July 2003. Until then there would be a ban on any sale.

Meanwhile, Assembly Majority Leader Barbara Buckley, D-Las Vegas, said she opposed giving Guinn the added power. She said the policy on divestiture should be set by the Legislature.

"We are elected to make public policy, and we're in the midst of an energy crisis," said Buckley. The Legislature cannot abdicate its responsibility, she said.

Both Democrats and Republicans agree the sale must be stopped to allow the two utilities to control their own generating plants, as opposed to putting them in the hands of outside owners who would be able to inflate prices in 2003. There are differences between the Senate and Assembly, however.

The Assembly passed a bill from the Democratic leadership stopping divestiture outright for two years and then permitting the sale of the power plants for only substantial financial emergencies for the next four years. The bill before the Senate committee would allow the sale after two years with approval from the PUC and Guinn.

Batjer said the governor is "about fed up" with the delays in the Legislature in passing a bill to stop the sale of the plants. She suggested that Guinn would use his veto in an "extreme crisis." And she said giving the governor the veto power "is not critical" to the bill.

Guinn's legal counsel, Keith Munro, initially indicated Guinn favored this amendment. "This is an opportunity for this state to weigh in on anything that is so important to the state and determine what is in the best interest of the state. This governor is not afraid to weigh in on any issue that is so important."

Asked if the governor did not trust his appointed three-member utilities commission, Munro said, "He does trust the Public Utilities Commission. This is the opportunity for somebody with a different perspective than somebody who sits on the utilities commission."

"The governor does not want to let go any of our plants," said Munro. He said the governor has concerns regarding the constitutionality of delaying divestiture for six years.

But Buckley and Assembly Speaker Richard Perkins, D-Henderson, said the six-year delay in allowing sale of the plants was constitutional.

Batjer also told the Senate committee the governor wants a deferred energy provision in the divestiture bill. Deferred energy allows a utility to ask the Public Utilities Commission for the authority to raise rates to recover the full cost of the more expensive fuel that it purchases. The utilities are being permitted to recover only a fraction of their higher energy costs.

Company officials say Nevada Power is now recovering about $1 for every $1.69 cents in higher fuel costs. And Sierra Pacific Power Co. is being reimbursed about $1.60 for every $1 it spends.

Batjer said the deferred energy provision is necessary for customers to avoid "rate shock."

Sen. Randolph Townsend, R-Reno, chairman of the committee, promised its version of the divestiture would be passed by the Senate by the end of the week.