Editorial: Consumers at center of utility talks

MONOPOLIES generally breed higher prices; competition lowers them.

For example, if you can only buy a television from one store, that business can charge whatever it wants. If 10 stores offer televisions, prices will vary because the stores compete against each other for customers.

Look at the breakup of AT&T. Today there is a variety of phone and communications companies, services and prices.

In that vein, the Legislature is studying the benefits of a national trend to allow competition in the electric industry.

The Public Service Commission, which regulates utilities, has produced a report on the complex issue.

It's complicated because, unlike televisions in the aforementioned example, electricity is a necessity. It's something we all must purchase.

Therein lies the problem. How do you open up competition but make sure that all consumers' needs are met? What about customers who don't want to shop around? Who will take care of them?

And if there's competition, will companies only want to provide power to the "plum" customers such as large hotel-casinos and shoo away the homeowner on a fixed income?

Will neighbors have to form large blocs to buy power?

What happens if one company goes out of business? Will its customers have to wait for power until they sign up with another company?

Those are the concerns of the PSC, according to Public Service Commissioner Judy Sheldrew.

As well they should be because an open market will impact every resident of Nevada.

Competition has its advantages -- most notably in lower prices. But we should be wary of premature claims of big savings.

Nevada Power, which supports competition in the wholesale generation market, has participated in the debate. Other companies have expressed an interest in providing power to Nevada.

It will be up to the Legislature to determine whether the electric industry will be a free market in Nevada. Lawmakers also will decide who will oversee the industry and how consumers will be protected.

There are many details to be worked out, but the PSC's study is a positive first step toward giving Nevadans the best possible options.

As the report notes, it's important for the Legislature to remove barriers to competition but even more important to assure Nevada ratepayers are not disadvantaged by the sale of low-cost power to other jurisdictions.

The PSC is looking ahead to how best provide for Nevadans' electric needs.

The Legislature has an awesome task before it of digesting all the information, separating rhetoric from facts and deciding how to satisfy all consumers' needs -- not just those of large ratepayers.

On the surface, an open market will provide Nevadans with the best services -- especially considering technological changes -- at the best prices.

In that venue, the Legislature and PSC will be charged with seeing that competition is fair and electricity, as well as uninterrupted service, is available to every Nevadan.

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