Bill would expand power sales to local governments

Cy Ryan and Richard N. Velotta

Thursday, Feb. 22, 2001 | 11:14 a.m.

A bill has been introduced in the Nevada Senate to permit the Colorado River Commission to provide electric service to any political subdivision, including Las Vegas, Henderson, North Las Vegas and Clark County.

Commission Director George Caan said this would give these political subdivisions an option regarding where they purchase their power. Currently they buy from Nevada Power Co.

Caan said the commission now is limited regarding who it can sell power to. Its current customers include Boulder City, the BMI industrial complex in Henderson, the Southern Nevada Water Authority, Nevada Power, Valley Electric, Overton Power and Lincoln County.

The commission receives low-cost power from the dams along the Colorado River, including Hoover Dam. It passes this power along at cost to the customers, charging only an administrative fee. And it has long-term contracts for that power and that electricity is all committed to existing customers.

The CRC also buys electricity from other generating sources on the open market. That's the power that would be available to the potential new customers.

Caan said the CRC is paying the same now as Nevada Power Co. when it buys on the open market.

The bill, he said, is being pushed by the Southern Nevada Water Authority. He said the electricity purchased by the CRC would "not necessarily be cheaper power" but it would give the local governments a chance to shop around.

Caan said the original idea behind direct sales of electricity to government entities was to offer an alternate source for large users, like the water authority, which uses electricity to pump water to the city from Lake Mead.

If the proposed legislation is approved, the entities could sell power to residents of their jurisdictions, but an agreement would still have to be reached to pay for transmission, and Nevada Power operates the transmission and distribution lines.

Caan said right now, the sale of power to residential customers may not occur, since the CRC and Nevada Power pay about the same amount for power on the open market. But as market conditions change, it may be more advantageous for governments to offer alternatives to existing utilities.

The bill Senate Bill 211, was introduced Tuesday by the Senate Commerce and Labor Committee. It was referred to the Natural Resources Committee.