Guinn joins governors in fight against energy price caps

Erin Neff

Thursday, Feb. 8, 2001 | 10:43 a.m.

CARSON CITY -- Energy issues continue to dominate the early discussions and decisions in the early going of the state Legislature.

Gov. Kenny Guinn has joined seven other Western Republican governors in writing a letter to the federal government asking the Bush administration not to cap energy prices.

"These caps will serve as a severe disincentive to those entities considering the construction of new electric generation, at precisely the time all of us -- and particularly California -- are in need of added plant construction," the letter to Energy Secretary Spencer Abraham said.

Govs. Jane Hull of Arizona, Bill Owens of Colorado, Dirk Kempthorne of Idaho, Judy Martz of Montana, Gary Johnson of New Mexico, Mike Leavitt of Utah and Jim Geringer of Wyoming, joined Guinn in signing the letter dated Tuesday but released Wednesday.

The letter also states the governors' support for ending an order requiring energy wholesalers to sell surplus power to California.

Guinn had previously indicated support for partial energy caps, but has been leaning toward letting market forces dictate prices in recent days since attending the Western Governors Association conference in Portland.

This morning as the Senate Commerce and Labor Committee continued a three-day hearing on energy issues, the topic shifted to in-state production needs.

A number of energy companies told the committee about plans to build a variety of power plants throughout Nevada. But they also came asking for assistance.

"It is painfully obvious that supply is the biggest issue here," Committee Chairman Randolph Townsend, R-Reno, said as today's hearing began.

Calpine Corp., Mirant and Duke Energy Co. were just a few of the companies touting plans for facilities in Southern Nevada.

Calpine plans a natural gas plant on the Moapa Paiute reservation 45 miles northeast of Las Vegas. That plant, which has the capacity to produce 1100 megawatts of power during peak months, should be operational by summer of 20003.

John King, vice president of business development for Calpine's Western operations, asked the legislators to schedule timely hearings on permits.

Mirant plans two plants in Apex, north of Las Vegas. The first is scheduled to open in summer of 2003. The second, which would bring Mirant's production total to 1,100 megawatts, does not yet have a scheduled opening date.

Duke Energy also plans a natural gas plant in Apex to produce 1,200 megawatts by summer 2003.

The committee also heard from renewable energy company, Vulcan Power Co. of Oregon, which suggested Nevada has the capacity to produce up to 2,000 megawatts of geothermal power in the next decade.

The problem for geothermal energy is that companies need long-term contracts with governmental entities and power providers to ensure that someone will buy their product after it is produced.

Sen. Mike Schneider, D-Las Vegas, said he didn't understand why Vulcan and other geothermal companies aren't rushing to offer their product.

"In the California market they're having rolling blackouts, and you have a renewable energy source, it would seem you could sell it there right now," Schneider said.

"It seems to me in Las Vegas this summer we're going to have brown-outs," Schneider added. "Put your product online."

Vulcan plans plants near Fallon and Fernley, but said energy produced in northern Nevada could be transmitted to Las Vegas.

Sen. Dina Titus, D-Las Vegas, told the committee she will be submitting a bill to help increase generation of power plants by expediting the licensing and approval process.

Also this morning, Assembly Speaker Richard Perkins, D-Henderson, sent a letter to all offices in the legislative building asking that everyone turn off lights, computers and unnecessary electrical appliances before leaving each day.