Editorial: Don’t fool with deal on power

Tuesday, May 8, 2001 | 9:26 a.m.

Gov. Kenny Guinn and the Nevada Legislature made the right move last month when they reached a deal to scuttle deregulation of the electric industry in Nevada. California's electric deregulation debacle, coupled with the skyrocketing rates for energy in the West, made a timeout the wise course at this juncture. Unfortunately, however, lobbyists working for casinos and mining companies are looking to partially undo the deregulation ban. These well-heeled special interest groups want legislation passed that would allow them to cut their ties to Nevada Power so they could buy cheaper power from other energy producers.

Sierra Pacific Resources, the parent company of Nevada Power, isn't opposing this plan -- as long as there are guarantees that the customers left behind wouldn't be hurt. Yet there is an inherent unfairness to this proposal since it would prohibit individuals and smaller businesses from getting together and forming associations that would allow them to purchase cheaper power elsewhere, too.

State consumer advocate Tim Hay is correct to point out that this is special interest legislation, noting that it would allow just those that use more than 1 megawatt of electricity, which effectively means it would be limited to big users, such as casinos and mines. Hay said it would be wrong to shut out other groups, such as AARP, which could effectively combine their memberships and receive lower-cost energy. Hay also said that local governments shouldn't be prevented from buying power on behalf of their residents.

The Nevada Legislature should stop any misguided plan that would discriminate against smaller companies and residential customers. For that matter, placing a halt to deregulation was a sound action -- the Legislature shouldn't tinker at all with this sensible moratorium.