Lawmakers move to avert energy crunch

Erin Neff

Monday, March 19, 2001 | 11:15 a.m.

CARSON CITY -- With California officials warning of more blackouts in that state this summer, Southern Nevadans are beginning to realize that the August dog days here also could bring hours without air conditioning.

Thus as warm spring weather brought cheer to Las Vegas this week, it also has set in urgent motion a political race to solve the state's pending energy crisis.

Senate Republicans and Assembly Democrats will each discuss -- and will likely vote on -- separate measures to keep the state's power company from selling its generating plants.

The Senate's Commerce and Labor Committee, chaired by and made up of a majority of Republicans, has been considering the issue for weeks.

Now as Assembly Majority Leader Barbara Buckley, D-Las Vegas, plans to ask for a vote on her similar bill this week, the Senate committee is quickening its pace.

"We have to get this passed," Senate Commerce Chairman Randolph Townsend, R-Reno, said. "We don't have time to wait on this any longer."

Although Townsend is mindful of the political advantage his party could have if a bill they push is passed first, he also realizes quick action is needed to help consumers.

Buckley, realizing that Townsend's committee is expected to pass its bill Wednesday, is calling on the Assembly's Select Committee on Energy to do the same the next day.

"I think it's very possible it will pass out of committee on Thursday," Buckley said. "We have to move quickly."

Both bills would halt the sale of Sierra Pacific Resources power plants. Sierra Pacific Resources is the parent company of Nevada Power.

The Senate's bill would prohibit the company from selling its assets until 2003 and would restrict the conditions under which such sales could occur from 2003 to 2006.

Buckley's bill would impose a moratorium on the sales until 2007.

During committee hearings last week, Townsend was advised that stretching an absolute moratorium longer than two years could leave the state more open to lawsuits from companies that wish to purchase Sierra's assets.

"Our legal adviser has told us that 2007 is fine," Buckley said of her version. "We need time to allow the energy markets to stabilize. Stopping the sales until 2003 won't give us enough time for that."

Another reason for the haste in passing the legislation out of committee is the approved sale of Sierra's Mojave power plant to AES.

That sale was already approved by the state Public Utilities Commission, but the deal has yet to be finalized. Once the title to that plant changes hands, it will be harder for the state's legislation to hold up in court if challenged - something AES has already threatened to do.

Even if the Commerce Committee and the full Senate pass the Senate version of the bill, the legislation would have to come through the Assembly's energy committee. Anything passed out of that committee and the Assembly would end up over in the Senate's Commerce Committee.

Whichever party strikes first may still end up last after the entire process. But for now, the race is on.