Nevada Power sues for right to use its logo

Nevada Power Co. and Sierra Pacific Resources Inc. have filed suit for the right to use their names and company logos when competition begins for the electric power industry in the state next year.

The Public Utilities Commission of Nevada last year approved regulations outlining the role of utility affiliates when the industry is restructured.

Under the rules, established utility companies would have to form affiliates to compete in the Nevada market.

The rules would prohibit the use of the Nevada Power and Sierra Pacific names by affiliates because the PUC fears the companies would have too great a name-recognition advantage when competition begins. Nevada Power and Sierra Pacific are merging.

Under the regulation, any new affiliate would be able to identify its relationship to the parent company as long as the parent company's logo is not used and a disclaimer states the affiliate is not the parent. The disclaimer was necessary to satisfy Nevada's Unfair and Deceptive Trade Practices Act and provisions of the Federal Trade Commission.

In a lawsuit filed in District Court in Washoe County, the utilities said the rules adopted by the PUC violate the utilities' right of free speech by prohibiting use of the name and logo by affiliates.

The suit also said the rules violate the companies' right to equal protection of the law by prohibiting the sharing of officers and directors between the utility and its affiliate.

Don Brookhyser, associate general counsel for Nevada Power, said in addition to the advertising issue, the company is concerned about having to use different board members with an affiliate company. According to the regulations, only the chairman of the utility's board of directors could serve on the affiliate's board.

"It would be useful to have the same chief financial officer, legal officer and other officers directing both companies to facilitate financial planning and legal efforts and strategies," Brookhyser said.

The current affiliate rules could change because a proposed deregulation amendment under review by the Nevada Legislature this session would allow the utilities to use their names.

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