County officials consider entering power business

Adrienne Packer

Wednesday, Feb. 7, 2001 | 11:08 a.m.

Clark County officials are exploring the idea of getting into the power business after hearing nightmarish stories of skyrocketing utility rates in California markets where utility companies are investor-owned.

While the county determines whether forming public-private partnerships with energy companies is feasible, commissioners want to stop Sierra Pacific Corp., parent company of Las Vegas utility Nevada Power Co., from selling its plants to Oregon and to begin an energy conservation program.

The commissioners kicked around the idea of creating a public agency to purchase power and bill users for it, but did not have a concrete proposal.

They also suggested trying to slow deregulation until they have decided which course to take.

"We're saying don't let Nevada Power sell until we have our ducks in a row," Commissioner Yvonne Atkinson Gates said Tuesday.

Atkinson Gates said several energy companies have expressed interest in building power plants in Southern Nevada. She suggested the county enter into contracts with the companies so that a portion of the power generated is kept in the Las Vegas Valley.

She said she was bothered when she learned Duke Energy wanted to build a plant at Apex Industrial Park, use the county's water and threaten air quality, then send all of its electricity to California.

"I asked if we could require as a condition they do something with us so they don't export power to other states and we don't get anything out of it," Atkinson Gates said.

Representatives of the Southern Nevada Water Authority told commissioners Tuesday that while investor-owned utilities in California had doubled their rates since the market was deregulated, municipally owned utilities were considering rate cuts.

Municipal utilities offer the lowest rates to customers while investor-owned companies must be concerned about making a profit.

Commissioner Myrna Williams agreed that Nevada should look for a different model than California when trying to cope with deregulation.

"Let's not try to be California, because they are in trouble all the time," Williams said.

Commissioners voted to protest the sale of Sierra Pacific plants, in part because it would force the county to buy electricity in an unstable market.

"Short-term electric reliability should be secured by denying, delaying or conditioning the current divestiture of existing Nevada utility-owned power plants," according to the water authority's report.

But secondly, the sale could cost Nevada customers millions of dollars.

Oregon officials have insisted that their ratepayers not be stuck with acquisition costs "leaving Nevada customers potentially on the hook for much of the $1.1 billion premium," the water authority report says.