Hay praised for stint as advocate

Kevin Rademacher

Thursday, Dec. 23, 2004 | 11:01 a.m.

Nevada utility executives and consumer groups were sounding off Wednesday on news that current Public Utilities Commissioner Adriana Escobar Chanos will succeed Tim Hay as the state's consumer advocate.

Carla Sloan, director of AARP of Nevada, emphasized that the position is critical for the state's consumers, particularly to those retirees on fixed incomes.

"We believe this is an absolutely critical position," Sloan said. "The whole utility rate-making process is very complicated. It is very difficult for the average consumer to engage in this process, and it certainly affects consumers' pockets in dire ways."

The presence of the consumer advocate also helped keep individual consumers on equal footing with the state's business interests. During rate cases, PUC staff and the consumer advocate's Bureau of Consumer Protection, by law, can participate in all rate cases. In major cases, however, many major corporations are granted permission to participate as well.

Sloan said that the consumer advocate ensures that individual ratepayers are heard, just like gaming companies and mine operators.

"It makes it even more important that the consumer advocate has an aggressive voice," she said.

Sloan praised Hay for working with AARP members to educate them to the utility process and for hearing consumers' concerns.

"I think he was truly very open to the needs of Nevadans," she said. "He always had an open-door policy with us."

PUC Chairman Don Soderberg conceded that he did not always agree with Hay, but he acknowledged his role as consumer advocate and a PUC commissioner before that.

"It's not lost on me that he has had a spectacular career," he said.

Walter Higgins, chief executive of Nevada Power Co.'s parent, Sierra Pacific Resources, saw Hay attack the company aggressively for what the consumer advocate described as imprudent practices during the Western energy crisis of 2000-01.

Hay's protests were followed by the PUC's 2002 move to disallow more than $400 million in recovery from ratepayers that Nevada Power sought for money it spent on electricity and fuel in 2001. The move left Nevada Power crippled by a junk credit rating that lingers today.

Higgins comments about Hay's departure were brief.

"We wish Mr. Hay well in his future endeavors," Higgins said.

Escobar Chanos, however, has been tough on Nevada Power as well.

In 2003 Escobar Chanos sought to disallow $180 million of a $195 million rate increase request sought by the electric company. Ultimately, Soderberg and fellow Commissioner Richard McIntire ultimately voted to disallow only $47.5 million.

Still, Higgins said he looks forward to working with Escobar Chanos.

"We believe she will bring to her position a strong commitment to the consumers," he said. "We look forward to working with her in the spirit of cooperation that will benefit all citizens of our state."

Roger Buehrer, a spokesman for Southwest Gas Corp. of Las Vegas, echoed Higgins' comments, adding that her experience with utility issues will bolster her effectiveness.

"We think that that will help her evaluate Southwest Gas cases that come before the commission," he said.

McIntire, who went to work for the law firm Jones Vargas as a utilities consultant following his stint on the commission, said Escobar Chanos is a perfect fit for the advocate's position.

"Her heart is with the consumer," he said. "She's perfect for this. She has a track record of somebody who has the consumer in mind."

Escobar Chanos' course to the new position mirrors that of her two predecessors -- Fred Schmidt and Hay -- who served as PUC commissioners prior to becoming consumer advocate.

"She certainly has the qualifications and background," said Schmidt, now an attorney for the Hale Lane law firm. "It's the path I followed and I did it for 12 years ... It's probably the best job in the state in terms of being a fun job where you get to do meaningful work that is important for the people of Nevada."