Guinn unveils energy plan

Thursday, Feb. 22, 2001 | 11:27 a.m.

CARSON CITY --- Gov. Kenny Guinn today unveiled a plan to get Nevada through the "energy crisis," but he cautioned residents there will continue to be price increases in electricity and natural gas.

The governor called on the state Public Utilities Commission to take another look at its approval of the sale of generating plants owned by Nevada Power Co. and Sierra Pacific Power Inc. He said the "divestiture in its current form could adversely impact Nevada."

Guinn said he had no authority to act in this field and that it was up to the PUC, whose members he appoints.

"Since the divestiture order was issued, the energy crisis in California has heightened concerns about the ability of our consumers to receive a reliable and adequate power supply at a reasonable rate," he said in a letter to PUC Chairman Don Soderberg. The commission is to take up the issue at a special meeting tomorrow.

In his six-point plan, Guinn said he has received a commitment from the Las Vegas Valley Water District to provide water for construction of four new power plants in Southern Nevada. In exchange these companies have committed to maintain up to 50 percent of the production for use in Nevada.

The governor has also ordered a streamlining of the permit appeal process from its current 12 to 24 months to no more than 30 days.

Nevada Power also has given the governor a commitment to finance construction of a transmission line that will provide access to the new power plants.

"The construction of the power plants and transmission line will be compatible to completion days," he told a news conference where lobbyists from the energy industry nearly outnumbered the press.

Guinn also said deregulation will be put on hold "indefinitely." The 1999 Legislature allowed it to start early in 2000, but Guinn said the state was not ready then. And last summer he delayed a second potential start-up date in September.

He said he "will not proceed with deregulation at a time of high demand, low supply, and unstable price controls in the energy market.

"At the time the market stabilizes, adequate consumer protections are in place, and supply is an acceptable level, " he will consider the issue again.

Guinn will start an energy saving program in state government and will encourage the voluntary participation of city and county governments, businesses and private individuals. If that doesn't work, he said, he will consider mandatory measures and penalties for non-compliance.

Guinn said he would continue his efforts to ensure the flow of gasoline and jet fuel to Nevada through the Cal-Nev Pipeline and continue to encourage the exploration of the use of alternative energy sources.

The governor said that no one bill will solve the problem facing Nevada -- which is toughest he has faced in 36 years.

Guinn, former president of Southwest Gas, said he does not want to imply that his program will hold down rates. The state "will continue to have price increases. No one can control the price of natural gas" that fuels most of the power generating plants in the state. But he said the plan will help avoid "runaway prices" that are plaguing other states.

In talking about the supply of electricity, Guinn said there is a tremendous demand for more energy in California. But they are building only six new plants, which is not enough to satisfy that state. California, he said, is eyeing Nevada, Arizona and the northwest states to get that power supply.

Guinn's announcement came on the heels of an energy plan put forth by Democrats in the Legislature that includes some of the same planks.