Consumers speak out on utilities

Kevin Rademacher

Monday, Dec. 20, 2004 | 10:54 a.m.

Only 10 ratepayers turned out at a consumer session on Friday to sound off on the state of Southern Nevada's regulated utilities.

Sponsored by the state Public Utilities Commission, the session is held annually for regulators to gather feedback on the performance of Nevada Power Co., Southwest Gas Corp., Sprint and other utilities. The light turnout, which actually had some customers praising the utilities and regulators, is a far cry from the heated sessions that marked the Western energy crisis just a few years ago.

Don Soderberg, chairman of the Public Utilities Commission, said the improvement in customer attitude was "encouraging."

Still, some persistent questions could point to concerns brewing for the coming year.

Two of the consumers at the session pointed to rapidly rising natural gas bills.

"With Southwest Gas, I'm not using it any more today than I did yesterday," said Catherine Brown. "I know rates have gone up, but double?"

Soderberg pointed to a flurry of rate cases filed over the past year by the Las Vegas-based natural gas distribution company. Those increases -- five in the 12 months ending Dec. 1 -- were driven by soaring natural gas commodity prices.

"This country is facing a crisis in its natural gas supply," Soderberg said. "Until the federal government decides that we are going to have to use less or tap natural gas supplies that we have plentiful in this country, we are going to be faced with that."

Southwest Gas executives and other utility experts have said that the increased demand for natural gas to fuel power plants has contributed to higher demand and, ultimately, higher prices. Meanwhile, coal has fallen out of favor as a power plant fuel because of environmental concerns.

Utility analysts have pointed to a long-delayed congressional energy bill as a possible turning point in the supply and demand equation.

"One of the problems (with the energy bill) is that there's so much in it," Soderberg said. "There are so many interest groups that don't want us to explore certain areas. There just has to be a compromise."

Karl Von Mohr, who recently moved to Las Vegas from San Diego, also questioned Southwest Gas' management amid the rising rates. Soderberg dismissed that concern.

"We believe Southwest Gas is run very efficiently," Soderberg said. "What the driver is here is the wholesale cost of the product."

Sprint, which faced a series of difficult questions at a similar session a year ago, received no questions from consumers on Friday, despite the recent announcement of a merger with Nextel that will change the structure of the local company.

Sprint has announced that it will spin off the local telephone company -- which serves Las Vegas and 17 other cities -- following the merger.

"It went very well," said Vicki Soares, a spokeswoman for Sprint.

Richard Bianco and Michael Lavine, both with the consumer group Citizens for the Protection of the People, praised Nevada Power for responding to questions since the Western energy crisis of 2000-01.

"Over the last couple of years, ever since the mad explosion, things have been going pretty good," said Bianco.