Editorial: Don't be shocked by power delay

The Nevada Public Utilities Commission has been a forceful advocate for giving customers the opportunity to choose their electricity providers, much in the same way that people can select any long-distance phone carrier they want. But last week the state utilities commission recommended that deregulation be postponed beyond the start date tentatively set for Dec. 31, 1999. Commission Chairwoman Judy Sheldrew said she wants to consult with legislators about arriving at a new date to begin competition.

The 1997 legislation, which drew the parameters for deregulating what have been strictly-regulated monopolies for most of this century, required the PUC to report back to the 1999 Legislature on whether it is in the public interest to delay the opening of competition for the electric industry. While the PUC says it has made progress in setting up part of the framework necessary for competition, there still is a lot of work to be done, including the passage of regulations dealing with complicated financial matters. Also still unresolved are issues regarding the impact of surrounding states that decide to deregulate, resolving the year 2000 computer bug issues, and putting in place regulations determining which company will be the provider of last resort for customers.

A few years ago, the conventional wisdom was that most states, and possibly even Congress, would mandate electric competition. But as policymakers grapple with this issue they have found it much more complicated than they first envisioned. Even California, the national leader in power competition, in 1997 had to delay for several months its initial target date to begin deregulation. Nevada should move forward on this issue but shouldn't get hung up in meeting artificial deadlines essentially pulled out of the air during the 1997 legislative session.

Big business interests and some legislators that pushed deregulation during the 1997 Legislature may be unhappy with any delay. But rushing into deregulation without having everything in place could be disastrous considering how essential the smooth flow of electricity is in our daily lives. The 1999 Legislature should ensure that competition is done right and not become obsessed with the speed in which it develops.

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