Community frustration escalates as power bills skyrocket

By GINGER MIKKELSEN

VIEW STAFF WRITER

Southwest Las Vegas resident John Cowens uses an energy efficient swamp cooler to keep his 1,500-square-foot house cool. Still, he said his electric bills used to average $30 a month and now they're nearly $60.

"We just put in a new air conditioner that's more efficient, but even though we're pretty frugal about using it, the bill has still gone up," he said.

He said his neighbor, with the same sized house, used to have $100 electric bills and recently had one that was $250.

"They keep raising the rates, but what are you going to do?" he said. "You've got to have electricity, so you pay it."

Trudy Bockman is frustrated as well with the increases in her power bill.

"We don't have that large of a house, but our bill has gone up considerably with the same usage."

The northwest Las Vegas resident said she is also concerned with the long-term effect deregulation will have on rates and billing accuracy.

"They misread the meters now, what will they do then?" said Bockman.

Bockman isn't alone in her confusion and frustration with changes in the electric utility system.

Rates have increased monthly since August. The increases are part of a global settlement made between Nevada Power, its parent company Sierra Pacific Resources, the Public Utilities Commission of Nevada , several large utility customers and a consumer advocate who represents the interests of smaller power consumers.

Nevada Power filed for a $110 million increase in power rates in July. When the PUCN denied the increase, Nevada Power and Sierra Pacific took the commission to court. The global settlement is a settlement signed by the parties to the lawsuits.

State Assemblywoman Barbara Buckley, D-Las Vegas, said her biggest concern with the settlement wasn't with the amount consumers are asked to pay, but with the method used in arriving at the agreement. She said any agreement to raise rates should take place in a public hearing, where profits and losses can be scrutinized and smaller consumers can be protected.

"It's hard to convince the public they are going to benefit from a back room deal," Buckley said. "We want a healthy power company. We went Nevada Power to be successful and we want the lights to turn on every time we flip the light switch, but we also want every penny to be justified," Buckley added.

Kay Grosulak, director of corporate development and strategic planning at Sierra Pacific, said the global settlement was as open as the judicial process would allow. She explained that all parties who had a part of the lawsuits signed the settlement. And all present agreed on how fuel increases would be handled.

Grosulak said the power company officials haven't been given free reign with prices. They are only permitted to pass on increases in fuel costs to customers. She said there are also rate caps for each month. In addition, the rate increases will undergo an outside audit.

To add to the confusion, Nevada Power customers face power restructuring.

In 1997 the Nevada legislature passed Assembly Bill 366 directing the PUCN to open the state's power market to competition.

So far, 23 states have passed laws allowing some type of restructuring, or are moving toward restructuring. California opened its power market to competition on March 31, 1998, and electric restructuring is under way in Arizona. The California deregulation has fallen on hard times and created a movement within the Golden State by consumers and lawmakers, alike, to seek a common ground. Prices have as much as tripled, and without relief, may continue to skyrocket.

Nevada Gov. Kenny Guinn has put deregulation on hold in Nevada. The governor plans to put together a bipartisan committee to form an energy policy for the state. To allow time to form a policy, Guinn delayed opening the market until Sept. 1, 2001 or sooner.

In a speech before members of the press last month, Walter Higgins, CEO of Sierra Pacific Resourcesm, said the delay is a wise decision. He explained that caution is necessary to keep Nevada's power prices from jumping the way California's did when the power system there was deregulated.

Higgins said competition with California for power and recent increases in petroleum prices are the primary reasons Nevada Power has been forced to raise utility rates for customers.

According to the Public Utilities Commission of Nevada Web site, 13 companies have applied for licenses to distribute power in the Las Vegas area. They are: Utility.com, New Energy Southwest, Duke Solutions, Enron Energy Services, Coral Power, Phaser Advanced Metering Services, Idaho Power, Northwind Aladdin, Creative Energy, Ormat Nevada, C3 Communications, SmartEnergy.com, Schlumberger RMS.

Higgins said he anticipates large customers will be given the opportunity to choose power providers first, followed by middle range customers. Residential customers would have a choice later in the process.

Residential customer Carole Cole said she's not sure what to make of deregulation, but having a choice is appealing to her.

"Now we have no options. You just pay the power bill or they shut the power off," said the southeast Las Vegas resident. "Every time you get your power bill it's sky high. I'm on a fixed income and it's killing me. Between that and the gasoline prices, this is ridiculous."

For more information on power restructuring, call the PUCN, toll free, at 1-877-ASK-PUCN (275-7826). You can also visit the agency's new interactive Web site at www.thechoiceisyours.org.