Guinn gets recommendations on Nevada deregulation guidelines

Brendan Riley

Friday, Jan. 12, 2001 | 11:22 a.m.

CARSON CITY - Gov. Kenny Guinn said Thursday that ratepayer protection will be his main goal as he reviews a recommendation from a panel to go slow on electric utility deregulation.

Guinn commented after getting a final report from a 17-member energy policy committee that he formed because of concerns about deregulation-related problems such as price spikes now occurring in neighboring California.

The GOP governor also said he's analyzing all recommendations in the 90-page report, and "in the coming weeks" will announce his decisions on the ones that he'll push.

He's likely to use some of the proposals in his Jan. 22 state-of-the-state address to the Legislature.

Guinn had been authorized by lawmakers to start electric utility deregulation, but twice refused to move ahead because of the instability of the utility market and the lack of ratepayer protections and a comprehensive state energy policy.

The energy policy committee was divided on specifics - but overwhelmingly backed the concept of no deregulation until there's a "beneficial environment" for consumers.

JoAnn Kelly, chairwoman of the committee, said that given the confusion and questions that now exist, it's unlikely that deregulation could occur in Nevada before 2003 - "and that's hopeful."

Other recommendations included one from Consumer Advocate Tim Hay to allow some bigger electricity users to go to a deregulated market - if their moves lead to new power plants or supplies that add to Nevada's net power supply.

Kelly said one example of a plan that might qualify for early deregulation under the committee's proposed guidelines would be a power plant discussed by some of the major mine operators in northeastern Nevada.

Another recommendation was to encourage power providers from outside Nevada to enter the state's market after submitting detailed proposals. But the underlying principle would remain - consumers must benefit rather than face problems such as the skyrocketing prices and power shortages that are hitting California.

The panel also suggested that the state review existing permit processes to assure there are incentives to build power plants in the state and to ensure that at least some of the power generated by new plants in Nevada stays in the state.