Thursday, April 18, 2002 | 9 a.m.
Regarding the Sun's April 7 editorial, "Failing to make the right choices":
It is difficult to imagine what kind of business model the Sun editorial writer thinks Nevada Power is using.
Why would management, representing the interest of shareholders such as myself (I own 636 shares), even consider suspending dividends in order to invest $125 million in transmission lines? Would a bank loan money for such a project without assurance it would be repaid? It is unreasonable to suggest this investment, without assurance of capital recovery, is somehow the duty of Nevada Power and its shareholders (owners).
Last year, when the California experiment in free market power exploded, Nevada Power took extraordinary steps to ensure their customers had electricity. Only one "rolling blackout" occurred (it was in my neighborhood by the way). Our governor "indefinitely postponed" deregulation and Nevada Power acted on an official resolution of the state of Nevada (a bill passed in 2001 by both houses and signed by the governor) permitting the utility to recover its expenses through deferred energy accounting.
Now, the Sun's editorial seems to want to selectively remember the facts and advocate a "get something for nothing" free-ride approach by spending other people's money. You know, just like the Water District that was going to pay for its bond issue by taxing tourists.
That's it! The Water District could buy Nevada Power and just float bond issues and permanent sales tax increases. Just like the School Board.
DAVID PALAY
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