Where I Stand — Mike O’Callaghan: How Q14 can affect you

Friday, Sept. 27, 2002 | 6:09 a.m.

IF YOU BELIEVE some of the political campaigns are rapidly deteriorating into electronic name-calling, then hang on to your hat and drawers. There is good reason to believe that the campaign Nevada Power Co. and its friends will wage against Clark County Advisory Question No. 14 will be well financed with no holds barred. This assumption can be made if the first pamphlet distributed by Citizens Against 14 is the opening shot.

The ballot explanation of Q14 is, "This ballot question will serve to advise the Nevada Legislature of the Clark County electorate's position regarding how electrical service should be provided in Clark County. Current state law in Nevada limits the ability of local governments to provide electricity to Clark County residents unless agreed to by Nevada Power Company officials. If this ballot initiative is adopted, the Nevada Legislature will be advised that the people of Clark County would like to have the option to acquire and maintain their own electric utility without the necessary consent of Nevada Power Company. A NO vote will advise the legislature that the electorate believes that an investor-owned utility should remain the primary electricity provider for Clark County."

The Southern Nevada Water Authority has made an offer to buy Nevada Power Co. with the promise to reduce the cost of power for Clark County consumers. As recently as Sept. 26, in a letter to Nevada Power CEO Walter Higgins, SNWA General Manager Pat Mulroy restated the offer. Mulroy wrote, "The SNWA has put forth a realistic and credible offer that forms a solid basis for discussions. The offer provides real and significant benefits to ratepayers, your investors and the Southern Nevada community. The SNWA has publicly committed to deliver at least a 20 percent rate reduction to customers, while providing $12 of benefit for each Sierra Pacific share compared to a substantially depressed current share price for all of Sierra Pacific of $6.00/share. Additionally, SNWA is committed to retaining virtually all of the Nevada Power employees."

More than a week ago, at a local Urban Land Institute luncheon, Mulroy argued her case against a powerful hired gun, Bill Brier, from the Edison Electric Institute. Brier has been an effective lobbyist for investor-owned utilities, and on this day he spoke for the power company. Reports coming from this confrontation in Las Vegas tell us that a very effective Mulroy ate Brier's lunch and sent him back to Washington.

Sun writer Steve Kanigher reported Mulroy had to defend the proposition that power costs can be lowered. He wrote, " 'All this is, is a refinancing plan,' Mulroy said. 'When you take equity at 10 percent and debt at 7 percent and refinance it at 5 percent, have you made money? Yes.

'We are financing debt, much of which is due to the creditworthiness (of Nevada Power). This is basic finance 101. You don't need additional revenues.' "

From here on, until Election Day, the SNWA may find that taking on Brier was easier than facing a well-financed television, letter writing and mailing campaign. The SNWA, a government body, can't use funds for political campaigns. These same financial restrictions don't apply to the newly formed Citizens Against 14.

Some real heavyweights, including Sprint and several other business-oriented groups, are riding to the rescue of the power company. The first missile fired off by Sprint to the Nevada Attorney General, in opposition to Q14, drew a quick reply. Consumer Advocate Timothy Hay, Chief Deputy Attorney General, referred to the letter as appearing to "be a campaign of misinformation." The eventual list of names attached to Citizens Against 14 could be interesting, but there will be no surprises.

Voters in Clark County had better pay close attention to the arguments for and against Q14. Large numbers of candidates claim that they are protecting your pocketbook. In some cases this may be true, but none of the individual candidates, elected or defeated, will have the financial impact that Q14 could have on the people of this area.