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Sandoval vetoes bill expanding the Public Utilities Commission of Nevada’s authority

CARSON CITY — A bill granting the Public Utilities Commission of Nevada the authority to oversee contracts negotiated by largely rural electric co-ops was vetoed Friday afternoon by Gov. Brian Sandoval.

The bill had been aimed at Valley Electric Association, the Pahrump-based cooperative that provides power in parts of rural Nevada. The company earlier this year negotiated a contract to purchase, maintain and operate the electrical distribution infrastructure at Creech Air Force Base in Indian Springs, which had been served by NV Energy. The cooperative maintained the bill was retaliation for that contract.

In his veto message, Sandoval noted that electrical cooperative associations are “run for and by its members,” meaning the customers who buy the electricity.

“Cooperative electrical associations are largely exempt from PUCN jurisdiction because it is presumed these entities will make decisions for the benefit of their members.”

Consequently, Sandoval said that PUCN regulation over the co-ops could lead to “costly regulation and legal battles” that are unnecessary. The bill was passed in the Legislature with every Democrat voting for it and with every Republican who voted opposed.

Valley Electric CEO Thomas H. Husted hailed the veto.

“Governor Sandoval and the Republicans deserve commendation for clearly understanding how Valley Electric Association is creating jobs for Nevada workers,” said Husted in a prepared statement. “They understand that Valley Electric Association is bringing millions of dollars in new revenue into Nevada, working to develop and export Nevada-based renewable energy to other markets and enhancing the overall economic development of our state.”

Democrats, however, reasoned that if the cooperative wants to behave like large utilities like NV Energy, then it should have the same type of regulations.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3900.

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