Friday, Dec. 14, 2001 | 9:39 a.m.
CARSON CITY -- A state senator from North Las Vegas says a proposed regulation by the state Public Utilities Commission will hinder development of renewable energy systems from such sources as wind, sun, geothermal and biomass.
Sen. Ray Shaffer, a Democrat, is urging the Legislative Commission to reject the regulation drafted by the utilities commission.
A law enacted by the Legislature this year required electric utilities in 2003 and 2004 have 5 percent of their energy produced from renewal resources.
By 2013 Nevada Power Co. in Las Vegas and Sierra Pacific Power Co. in Reno must have renewal resources supply 15 percent of their energy.
Shaffer on Thursday objected to the utilities commission regulation that would limit the incentive for development of renewal resources to .5 mills above the cost of regular power sources.
The law said the price Nevada Power and Sierra Pacific Power pay for the renewal resource power must be "just and reasonable." The issue of paying extra for renewal power was thoroughly debated, said Shaffer.
The Assembly tried twice to place a limit on the extra cost the electric companies would have to pay for the renewable power. One called for a 5 percent cap and a second called for a 10 percent limit on the difference between the cost of renewable energy and fossil fuel generation. Both were voted down, he said.
Shaffer said "Legislators in both houses stated they did not have a problem with subsidizing the renewable industry because it is good for the environment and a great economic opportunity for Nevada."
The goal of the law, he said "is to jump-start our own renewable electric generation industry and to create a market for renewables. The Legislature is also concerned about economic development opportunities for financially depressed Native American lands and rural Nevada, where many renewable energy resources are located."
Don Soderberg, chairman of the state Public Utilities Commission, said it was required to produce a regulation by Dec. 1, but nobody supplied the PUC with any data what would be "just and reasonable," in setting the price for renewable energy.
"We were shooting in the dark," he said. And the companies were unwilling to disclose in public hearings what the price might be because they were in a competitive market. Soderberg said the .5 mills incentive can be changed later when the PUC receives more information. The commission has asked interested parties to submit comments by Feb. 5.
The legislative commission meets today in Carson City and one item on the agenda is a review of administrative regulations. It could reject the regulation and send it back to the PUC for a rewrite.
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