Politicans make hay over power woes

Erin Neff

Wednesday, May 29, 2002 | 9:54 a.m.

Congressional candidates continue to make noise about electricity rates amid the growing fear of summer blackouts and the reality of Nevada Power's sinking finances.

But political observers said no one will benefit from making hay over the issue if the lights -- and more importantly, the air conditioning -- go off this summer.

"If there are blackouts this summer, there will be plenty of blame to go around," said Mike Slanker, a Republican political consultant working on Jon Porter's congressional campaign.

That isn't stopping two of Porter's opponents from grabbing press attention, and criticism as a result, over the issue.

Independent candidate Pete O'Neil argued on Thursday with Public Utilities Commission Chairman Don Soderberg about the specific numbers involved in the utility's rate increase request.

Soderberg charged that O'Neil was only addressing the issue because he is running for Congress.

"Me running for office has nothing to do with it," O'Neil said.

But it is state regulators, and not Congress, who have any say in the current Nevada Power rate issue.

"The Legislature created the PUC to handle this," Slanker said. "They were created to be a non-political entity."

Democratic congressional candidate Dario Herrera lambasted Nevada Power after the PUC approved a one-time rate increase -- averaging $12 -- that consumers will see on their June electric bills.

"Nevada Power has a record of dishonesty and mismanagement and we should question any action by Nevada Power to pass off the cost of its poor business decisions to Nevada consumers," Herrera said in a press release issued after the PUC decision.

In an interview, Herrera said he believes his role as chairman of the Clark County Commission makes Nevada Power one of his official responsibilities.

"As chairman of the County Commission, my first and foremost responsibility is to defend the interests of the residents," he said.

O'Neil has gone one step further, alleging he is personally responsible for Nevada Power getting less than the $922 million increase it had requested months ago from the PUC. The PUC granted the company $485 million.

"That is because I was out there calling attention to it and saying that it doesn't matter if the company goes bankrupt," O'Neil said.

Porter has kept out of the fray -- a move Slanker attributes to Porter's understanding of the unique role the PUC has in handling the company's rate cases.

But Porter is also a state senator, and the 2001 Legislature gave Nevada Power permission to seek the record rate increase to cover the cost of power purchases made during the summer of 2001.