Bill to halt sale of power plants is OK’d

Erin Neff

Wednesday, March 28, 2001 | 11:28 a.m.

CARSON CITY -- Saying timing is critical in a tumultuous energy market, the Assembly on Tuesday unanimously approved a bill prohibiting the sale of Sierra Pacific Resources' power plants.

The rushed Assembly Bill 369 cleared a committee in one day and gained bipartisan support in the full Assembly despite concerns Republicans had about lawmakers' inability to enact related energy issues.

But lead sponsor Assemblywoman Barbara Buckley, D-Las Vegas, said quick action by the Legislature is necessary to stop the sale of one of the plants, expected to be concluded April 7.

"I believe that AB369 has to be enacted by the Nevada Legislature by early April if we are going to stop the sale of the power plants," Buckley, the Assembly majority leader, said after the vote.

AB369 prohibits the sale of Sierra Pacific's plants until July 1, 2003 and imposes conditions under which the sales can occur from July 1, 2003, to July 1, 2007.

Meanwhile the Senate Commerce and Labor Committee, despite seven weeks of hearings on energy matters, has yet to vote on its version of the divestiture-moratorium bill.

Buckley said she hopes AB369 isn't held up in committee.

"We have to act now," Buckley said.

Sen. Randolph Townsend, R-Reno, said his Commerce and Labor Committee should vote Thursday on the Senate version of the bill. Townsend's committee will then schedule hearings on the Assembly bill.

Assembly Speaker Richard Perkins said that although AB369 is "not all inclusive," it does take an important step toward stabilizing the state's energy supply.

If Sierra Pacific Resources, the parent company of Nevada Power, keeps its plants, consumers can expect up to $3.2 billion in savings over the next five years, he said.

Lynn Hettrick, Assembly minority leader, urged support of the bill as "a good start."

"It's important that we work together," Hettrick, R-Gardnerville, said. "We must find a bipartisan measure."

Assemblywoman Kathy Von Tobel, R-Las Vegas, who expressed reservation about the bill when it cleared the Select Energy Committee, said she supported AB369 because it is critical for the company to retain its plants.

Von Tobel said she remained concerned about the company's financial health. She said she wanted the Assembly to consider Gov. Kenny Guinn's proposal to allow the company to institute deferred billing measures to recoup costs.

"Let's not put Nevada Power in financial ruin," Von Tobel said.

As discussions continued, legislators learned that California regulators approved a 46 percent rate hike in that state.

On Monday the Assembly's Select Energy Committee introduced Assembly Bill 661, a measure that would allow certain utilities to use deferred accounting.

Buckley said the bill passed Tuesday dealt specifically with two energy policy decisions -- halting divestiture and striking previously approved deregulation measures.

AB661 would allow deferred accounting; it would also make the commissioner of the Public Utilities Commission position an elected one.

The Assembly's Select Energy Committee on Tuesday heard testimony on a bill that would provide incentives to develop renewable or alternative energy sources in Nevada.

Assemblywoman Marcia de Braga, D-Fallon, sponsored Assembly Bill 418 to help provide a new source of energy. De Braga disclosed that she leases land to a geothermal developer in Stillwater and might not be able to vote on the bill in its current form.

Still, de Braga said she felt comfortable sponsoring and discussing the bill.

"I don't think anything in the bill would benefit me differently than anyone else," she said after the hearing.

Supporters of AB418 cited the state's potential for developing wind, solar, biomass and geothermal energy plants. The Energy Department called Nevada the "Saudi Arabia of geothermal."

The committee also heard testimony on Assembly Bill 349, which would create a fund to assist low-income residents with their energy bills. The fund would be created by increasing the mill tax on power bills.

Assemblyman David Goldwater, D-Las Vegas, sponsored the bill.