Editorial: How can they say it’s money ‘well spent’?

Thursday, Jan. 23, 2003 | 9:03 a.m.

When the Clark County ballot question advocating public power passed with 57 percent of the vote in November, it was known that Nevada Power had spent at least $1.6 million in its unsuccessful effort to defeat Question 14. The full amount spent wasn't known, however, because the latest campaign finance report before the Nov. 5 election only covered the time period through Oct 24.

Only now, after the final campaign finance reports were filed last week, are we realizing just how humiliating Nevada Power's defeat was. Nevada Power, according to the last report, ultimately spent $2.71 million to defeat Question 14, the referendum that supported the removal of a roadblock in Nevada state law that prevents a government agency from taking over a utility through a hostile takeover. (The referendum took on added importance once Nevada Power turned down Southern Nevada Water Authority's friendly takeover bid.) Despite the fact that supporters of Question 14 spent no money advocating its passage, Nevada Power officials still were putting out the spin last week that the $2.71 million was money "well spent." If that's the case, we're afraid to see what the utility believes is "wasteful" spending.

The 2003 Legislature will have a lot on its plate in the coming four months, in light of a huge budget deficit that has to be addressed and consideration of new taxes. Nevertheless, the Legislature should not ignore the overwhelming support for Question 14. The Legislature should remove the law that prevents the government-run water agency from pursuing a buyout of the electric company, a utility that hasn't inspired much public confidence in recent years due to its mismanagement.