Editorial: Trying to level the playing field

A revolution in the way people deal with their power company will happen by the end of 1999: For most Nevada customers, this will be the first time they will be able to select the company that provides them with electric power.

But with deregulation in a number of other industries, and the corresponding drop in consumer prices, the electric industry is finally being deregulated, including here in Nevada. While there have been price reductions after deregulation in some industries, there also has been confusion and sometimes poor service.

The Nevada Legislature gave the state Public Utilities Commission the responsibility to implement regulations, establishing a road map for the transition to a competitive environment, one that promotes choice but also protects the consumer.

One of the thornier issues for the commission is to make sure that new companies are encouraged to enter Nevada, a relatively small market. One fear is that the brand-name recognition the existing electric monopolies have may keep some companies from setting up shop here.

In an effort to make competition fair, the commission proposed regulations earlier this year that would have prevented an existing utility, such as Nevada Power, from using its current name to sell power to customers once deregulation begins. Nevada Power opposed this on constitutional grounds. The electric company said it would violate freedom of speech and would confiscate its property -- the company's corporate identity -- without proper compensation.

After listening to opposition to its plan, the commission has come up with a compromise that seems reasonable. Monopoly spinoffs still will have to come up with a new name, but they will be allowed to say that they are affiliated with the parent company in their advertising.

In addition, the monopoly's new subsidiary would have to carry a disclaimer in its advertising, stating that the subsidiary is not regulated by the Public Utilities Commission. The proposed language for the disclaimer is wordy and full of legalese, but the commission should refine it so it is concise and understandable.

When competition is allowed, times are going to be confusing enough for consumers. This plan appears to strike a proper balance, promoting competition but still letting customers stay with the existing monopoly's new affiliate, if they wish.

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