Big Nevada users could leave power grid under Assembly bill

Erin Neff

Thursday, May 24, 2001 | 11:02 a.m.

CARSON CITY -- The Assembly approved an energy bill Wednesday amid charges that it is unfair to allow only large power users to leave the state's electric utilities.

Assembly Bill 661 allows large customers -- those who purchase at least 1 megawatt of power -- to purchase electricity from companies other than Sierra Pacific Power and Nevada Power. One megawatt of electricity is roughly enough power for 1,000 homes in the cooler months.

However, during hearings in the Select Committee on Energy, Democrats expressed concern that casinos and mines should only be allowed off the grid if small customers can aggregate and leave the grid as well -- an idea rejected by the majority.

"Without the large users, we would most likely be a burden to Sierra (Pacific Power)," said John Carpenter, R-Elko, expressing concerns about residents in Elko, Eureka, Lander and Humboldt counties. "If big users leave, there won't be much left for the utility -- only the little people, and I just wonder what's going to happen to us."

Sheila Leslie, D-Reno, supports instituting a pilot program whereby small users could join together until they reach the 1-megawatt benchmark, and then leave the grid.

"We should be fair," Leslie said. "What's good for one should be good for all."

The measure passed 33-8, with Greg Brower, R-Reno, abstaining because a law partner lobbied on the bill.

Those opposed were: Sharron Angle, R-Reno; Barbara Buckley, D-Las Vegas; Chris Giunchigliani, D-Las Vegas; David Goldwater, D-Las Vegas; Don Gustavson, R-Sun Valley; Leslie; Mark Manendo, D-Las Vegas and David Parks, D-Las Vegas.

Carpenter, who said he was "in a quandary" because of what he considered the good provisions in the bill, voted for the measure.

In addition to allowing large customers off the grid, AB 661 also expands the Public Utilities Commission from three to five members, including one representative of the general public.

The large customers of Nevada Power that leave the grid must also purchase 10 percent more power than they will use. They must then transfer that power to Nevada Power for sale to small customers. That provision does not apply to Sierra Pacific customers.

The bill also includes provisions designed to spark renewable energy and to assist customers. The measure now goes to the Senate, where it is scheduled for a hearing Friday in the Commerce and Labor Committee.