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Editorial: No time to give up

Friday, Jan. 2, 2004 | 5:29 a.m.

WEEKEND EDITION

January 3 - 4, 2004

In June the Federal Energy Regulatory Commission rejected requests by utilities in Nevada, California and Oregon to be released from long-term energy contracts that they had entered into with power suppliers. The decision was awful, especially after federal regulators acknowledged that during 2000 and 2001 power suppliers had manipulated the Western energy market, a principal reason why consumers were hit with sky-high electric bills.

Nevada Power is suing in federal court to overturn the FERC's ruling involving more than $300 million of its energy contracts. The utility has been joined by the Nevada Public Utilities Commission and the state consumer advocate. Nevada's regulators also are seeking the support of their counterparts in other Western states.

PUC Chairman Don Soderberg anticipates the lawsuit will have regional appeal, but a couple of state utility commissions contacted last week by Sun reporter Kevin Rademacher didn't show much enthusiasm for joining the case. Some states may fear further antagonizing federal regulators, but all Western states should understand that a failure to overturn FERC's decision will embolden some power companies to take advantage of this region's utilities again.

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