Consumer chief concerned about utility’s promise

Tuesday, July 17, 2001 | 10:08 a.m.

CARSON CITY -- State Consumer Advocate Tim Hay is questioning whether Sierra Pacific Resources Inc., is reneging on a promise to shell out $5 million to help low-income families pay their energy bills.

Hay said Monday he wrote Sierra's Chief Executive Officer Walt Higgins June 29, but hasn't received any reply to his inquiry when the money might be available.

The company, which is the parent of Nevada Power Co. and Sierra Pacific Power Co., applied to the state Public Utilities Commission for a 17 percent overall increase that was approved in January.

As part of the application, the power companies agreed to set aside $5 million for low-income families who may not be able to pay their bills.

So far that money hasn't shown up, Hay said.

Bob Sagen, a spokesman for Sierra Pacific Resources, said the company has been working with the state Public Utilities Commission to "find a way to get the money to the proper people."

There's been no decision where the money will go and "everything is up in the air," said Sagen. Both the PUC and the utility company must agree, he said.

But Cynthia Messina, a spokeswoman for the PUC, said it is "incumbent" on Sierra Pacific Resources to make the payment. There is nothing that makes it mandatory, she said, adding the state agency doesn't have anything to do with it.

The rate increase was filed with the PUC, but the hike was later ratified by the Legislature, taking the PUC out of the picture, she said.

Hay added, "It's not clear that the PUC has the authority to distribute the money."

The company made a "moral commitment" to provide the money, Hay said, noting that the funds should be deposited in the state Welfare Division that runs the Low Income Energy Assistance Program.

That welfare program received $3.4 million from the federal government for this year. And the 2001 Legislature allocated $4 million to help low income families pay their rising energy bills.

Hay isn't sure what steps his agency can take if Sierra Pacific fails to produce the $5 million. In his June 29 letter, he said he expected the utility to contact the welfare division to plan how this money would be made available.

"I am certain you will agree time is of the essence as the record setting rate increases are not evident in the utility bills consumers are currently receiving," Hay told Sierra Chief Executive Officer Walt Higgins.

Also in limbo is a bill approved by the Legislature to impose a surcharge on every person's energy bill to raise an estimated $10 million to be used to help poor families pay their electric or natural gas bills.

The bill, Assembly Bill 661, was approved by the lawmakers, but it was after the 12 a.m. deadline on June 5.

The Nevada Supreme Court today decided the bill was legally passed because the Nevada Constitution says the Legislature doesn't end until midnight Pacific Standard Time. The Legislature was operating on Pacific Daylight Time.

If the Constitution is followed, the lawmakers had an extra hour to approve the legislation. And the bill was passed within that extended deadline.