Southern Nevada Water Authority may sell electricity

Friday, Jan. 12, 2001 | 4:20 a.m.

Pat Mulroy, general manager of the water authority, suggested during the final meeting of the Governor's Energy Policy Committee on Thursday that the government agency buy power on wholesale markets and possibly generate electricity from some of its own power plants.

The electricity then would be sold to Las Vegas-area water districts for retail sales to consumers. Consumers could opt out of the government system and buy their power from for-profit companies.

But Mulroy said the authority wasn't married to the idea of becoming a public power authority and would welcome other government agencies interested in that role.

The water agency also challenged plans to sell power plants owned by Nevada Power because the plants may help stabilize rates in the midst of the electric deregulation debacle in California.

But Steve Oldham, senior vice president of Sierra Pacific Resources, Nevada Power's parent, objected to any delay of the sales.

The utility executive said the plant sales agreements will enable Nevada electric customers to get electricity from those plants at 1998 prices until March 2003.

The buyback agreements between Nevada Power and its sister utility in Reno, Sierra Pacific Power, will save customers "several hundred million" dollars over the next two years, Oldham said.

Mulroy also opposed establishment of so-called "providers of last resort" who would serve customers unable or unwilling to switch to a competitor after the state deregulates its electric power industry.

Shell Energy, an affiliate of Royal Dutch/Shell Group, wants to be designated a provider of last resort, or the default power retailer.