Energy bill would protect only casinos

Monday, April 9, 2001 | 11:16 a.m.

CARSON CITY -- Nevada casinos are keeping alive an opportunity for big business to seek cheaper electricity rates while leaving the general public behind.

This doesn't sit well with Assembly Majority Leader Barbara Buckley, D-Las Vegas, who has played a major role in drafting bills to help Nevada avoid the rolling blackouts and runaway rates experienced in California.

Buckley said the bill, approved by the Senate Commerce and Labor Committee Friday, "allows deregulation to go forward without consumer protections we believe are essential for all Nevadans."

The measure, she said, is a windfall for big gambling clubs at the expense of the state's homeowners.

The Senate committee on Friday approved a plan that stops Nevada Power Co. and Sierra Pacific Power Co. from selling their generating plants and freezes electric rates until early next year, at which time ratepayers in Southern Nevada could face increases of 25 percent and higher.

The plan was an amendment to Assembly Bill 369, which had already passed the Assembly. That bill also repealed the law allowing open competition in the electric industry. But just 20 minutes after the Senate committee acted on that legislation, casino lobbyist Harvey Whittemore and utility representative Doug Ponn asked the committee to reopen the bill to apply what they called technical amendments.

The committee then approved an amendment that would keep deregulation in the law. Whittemore said the amendment allows the debate over deregulation to go forward, without it being tied to the sale of the generating plants and rate issues.

"What this does is it leaves restructuring in place. But we may repeal the whole thing," said Committee Chairman Randolph Townsend, R-Reno. But he added that, in the long run, it will be best to allow the large users to leave the system and seek other sources of power. That way, he said, Nevada Power and Sierra Pacific will have adequate energy for other customers.

Buckley disagreed. He said deregulation would permit mines and casinos to seek cheap power sources while homeowners would be socked with higher rates. She said these big customers could pull out of the present system with only the governor's approval. "Everybody else will be left with an unregulated monopoly," she said.

The 1999 Legislature approved plans to allow companies to compete with Nevada Power and Sierra Pacific Power. Though it was to become effective March 1, 2000, Gov. Kenny Guinn refused to approve deregulation both then and in September. He said the state was not ready for such a major change in the electric industry.

When he unveiled his energy plan last month Guinn said deregulation would be put on hold "indefinitely." He said he "will not proceed with deregulation at a time of high demand, low supply and unstable price controls in the energy market. At the time the market stabilizes, adequate consumer protections are in place, and supply is an acceptable level."

The Senate committee will take another look at AB369 today, and Townsend hopes it can pass the full Senate by the end of the week.