Guinn orders creation of conservation program

Tuesday, Feb. 6, 2001 | 10:38 a.m.

CARSON CITY -- The energy crunch will hit Southern Nevada this summer and Gov. Kenny Guinn has ordered the creation of a voluntary state conservation program and has hinted at stronger action if voluntary measures are not enough.

The governor said at a news conference Monday he also wants to clear away some of the roadblocks to build more generating plants in Nevada. And he suggested that electric rates might have to be restructured so those who use more power pay a higher rate.

The power crunch is the most serious issue he has encountered in his 38 years of public service, Guinn said.

But he said he was worried that the Legislature might overreact. "We don't want to move too fast," Guinn said.

The Legislature opened its 120-day session Monday and hearings start this week on the energy problems facing the state.

He said his Division of Emergency Management will be preparing a voluntary conservation plan for state workers and residents. For instance, he suggested that people turn off Internet connections when they are not in use. And television sets, he said, should be shut down when nobody is watching.

Internet usage consumes 13 percent of the power in the West, Guinn said.

If the voluntary conservation plan fails, Guinn said, "I will take more action," but did not elaborate whether he would impose mandatory controls.

He said some people could save up to 20 percent to 25 percent of their energy costs. But he estimated there would be a 1 percent to 2 percent reduction. And that won't solve the electricity problem that will be here for a year or two, he said.

He took a "wait and see" stance on proposals to stop Sierra Pacific Power Co. and Nevada Power Co. from selling their generating plants.

There are five potential power plants in Clark County on the drawing board and he wants to see if their permits can be expedited. The two issues slowing the permits are water and air quality.

The U.S. Forest Service and the Fish and Wildlife Service have appealed the water permits, and this could delay the projects up to six months, the governor said. He said the water, however, is under jurisdiction of the state.

If these power plants are built, Nevada should have first right of refusal to buy the production. But the state would still have to pay the market price, he said. "We cannot demand lower costs."

Guinn has included $5 million in his budget to help low-income families pay their energy bills. And he said Sierra Pacific Power Resources, in its latest $300 million rate increase, is setting aside $5 million to also help poor people meet their payments.

He has set aside another $28 million to meet the higher energy bills for the University and Community College System of Nevada, the public schools and the state. And he wants to be able to tap into the $126 million "rainy day" fund if the bills exceed that.

Using an example, he said a large gaming company now pays $35 million and its cost could skyrocket to $60 million to $70 million.

The summer will mean increased power use both in California and Southern Nevada. Asked about rolling blackouts in the Las Vegas area, Guinn replied, "I hope we don't have to face that. It depends on California."

Nevada Power Co. has 50 percent of its electric supply on fixed cost so it has to go to the open market to buy the other 50 percent. As California bids up the price on the open market, that will increase the price paid by Nevada Power, the governor said.

Guinn also wants to "move aggressively" to develop more renewable power sources such as thermal and wind. There's a potential, he said, for developing 1,500 to 2,000 megawatts of power through thermal sources.

But he stressed throughout the news conference, "There is a limited amount we can do in the West. We're all hooked to California."