AES Corp.’s energy service arm, NewEnergy, said yesterday it hasreceived its business license as an alternative supplier ofelectricity from the Public Utilities Commission of Nevada (PUCN).The company will be able to sell electricity to Nevada consumers assoon as the market is opened to competition.

However, there is a question as to when that will be. The two mainelectric utilities in the state, Sierra Pacific Power and NevadaPower, have sued the PUCN in an attempt to nullify the currentelectric deregulation legislation (see Daily GPI, March 29). The utilities, which are bothSierra Pacific Resource subsidiaries, said the legislation is unfairto its shareholders and customers.

Upon receiving its licence, NewEnergy said it is concerned thatthe lawsuit filed by Nevada utilities is “the worst kind ofdelaying tactic to stall the start of electric competition in thestate.”

NewEnergy said it saw no problem with the deregulation rules.”It’s doubtful that Sierra Pacific Resources’ problems were causedby the original restructuring law or subsequent Commission rules,”Peterson said. “It’s more likely Sierra realized the deal theyconstructed and agreed to last year wasn’t having the intendedeffect. In that deal, they agreed to freeze electricity rates forthree years, except for a final adjustment for fuel costs, whichvary from year to year. We believe that Sierra miscalculated andnow realizes that they really needed a rate increase to recovertheir capital and operating expenses.”

The restructuring legislation (SB438) was passed in April of1999, and had an original date of March 2000 for complete retailaccess. Yet it gave governor of the state, not the PUCN, theauthority to select another date if he deems it in the bestinterest of consumers. In March, Governor Kenny Guinn said thedelay would be indefinite, citing multiple issues including theconcerns of the utilities.

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