Election 2002: Question 14

Thursday, Oct. 17, 2002 | 11:32 a.m.

Few questions have provided as much fodder for political attacks as Question 14.

Ostensibly, the ballot question is advisory and would, if followed by the Nevada Legislature, overturn a law passed last session that prohibits a public agency from buying up shares of a company and launching a hostile takeover.

But the issue has become a referendum on the ongoing efforts by the Southern Nevada Water Authority to buy the assets of privately held Nevada Power Co. from parent company Sierra Pacific Resources.

Nevada Power has thus far rejected the water authority's $3.2 billion bid.

Consumer advocates, nonprofit groups and an array of elected region officials support both the buyout and the ballot question. The fuel for their effort is discontent with rising power rates and financial troubles at the electric company.

But telephone company Sprint, Nevada Power, the Las Vegas Chamber of Commerce and the Nevada Taxpayers Association are leading a political action committee devoted to derailing the question.

Carole Vilardo, taxpayers association president, said opponents have two basic arguments. Vilardo and her coalition argue that what could be in the private sector, should be. They do not believe that a publicly owned electric utility will be able to lower rates, as the water authority managers claim.

Vilardo also fears lost tax revenue for local and state governments, despite the water authority's insistence that public power agency would replace that revenue.

Supporters for the measure say those questions have been answered, and that a public electric utility would lower rates. Peggy Maze Johnson, Citizen Alert executive director and chairwoman of Yes on Question 14, a political action committee, argues that the profit motive should be removed from a utility serving an essential public service.

"I believe in profit, I've been a business owner, but there are some things that should not be for profit," she said.