Editorial: Bad plan for power purchases

Friday, May 18, 2001 | 4:11 a.m.

Earlier this year it appeared that the Nevada Legislature and Gov. Kenny Guinn had put a stop to deregulation of the electric industry. But this reasonable timeout, in light of California's electric deregulation debacle, may have been fleeting. The casinos and mining companies, which are the two most influential special interests in the state, have made it clear that they want separate legislation passed that would exempt some of them from the deregulation ban. It would be patently unfair, though, to let just big businesses try to get the best price for their electricity while also banning smaller businesses and residential customers from doing so. Still, the Assembly Select Committee on Energy last week recommended passage of a bill that would allow the biggest energy users to buy their power on the open market.

If the Legislature permits partial deregulation -- which is a risky move given the circumstances -- it should be done equitably. If a local government wants to pool together its residents, or a large nonprofit organization wants to gather together its members in order to get a better deal on its power bills from someone other than Nevada Power, then they should be allowed to do so just as a casino or mine would under the provisions of Assembly Bill 661.

And if local governments or nonprofit groups were allowed to look elsewhere for power, even then it still should be extremely limited considering how volatile the energy market is. Majority Leader Barbara Buckley, D-Las Vegas, who opposes deregulation, sensibly has said that in light of how unstable the situation is now, only a small pilot program -- under strictly controlled guidelines -- should be allowed if partial deregulation occurs.

AB661, as it is now written, benefits only special interests. If this legislation passes it will send a message to Nevadans that there are two sets of rules: one that applies to casinos and mining companies and the other for the rest of the residents of this state.

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