Friday, October 18, 2002
Copyright © Las Vegas Review-Journal
State senator asks PUC to rule on offer to buy utility
By JOHN G. EDWARDS
REVIEW-JOURNAL
State Sen. Joe Neal, the Democratic nominee for governor, filed a petition Thursday that asked state regulators to determine whether the Southern Nevada Water Authority's $3.2 billion offer for Nevada Power is in the public interest.
Also, Neal wants the Public Utilities Commission to consider whether to revoke Nevada Power's certificate to operate as an electric utility and to take other action "because Nevada Power is unable or unwilling to provide adequate and reliable service at reasonable rates."
Nevada Power initially rejected the public water authority's offer. But Jack Leone, a Nevada Power spokesman, said the board of Sierra Pacific Resources, the parent company of the utility, has not announced its decision on the water authority's Sept. 25 reaffirmation of its offer.
The PUC can grant Neal's petition, deny it or hold it for further investigation.
Jan Cohen, PUC assistant general counsel, said the general counsel's office has not had time to determine whether the PUC has jurisdiction.
"It may be a bit premature," said Bill Kockenmeister, a Reno attorney who represented commercial customers in Nevada Power's rate cases this year.
"I don't think the PUC has jurisdiction to make the utility sell," Kockenmeister said. "It would be unusual for the Public Utilities Commission to force a utility to sell to a potential buyer."
Kockenmeister said the PUC could investigate whether Nevada Power is providing "just and reasonable" service. Also, the regulatory body may have jurisdiction if Sierra Pacific Resources were to agree to sell Nevada Power to the water authority, he said.
Tim Hay, the state consumer advocate, said he had not seen Neal's petition. He said he was surprised the utility company had not opened talks with the water authority because the offer was a generous one that would benefit Nevada Power's customers and shareholders.
"I would commend Sen. Neal for stepping forward and getting that dialogue going," Hay said.
