FYI


John J Stauffacher
08/30/2000 02:22 PM

To:   Ed Hermann/NGCCorp@NGCCorp, Joseph Paul/NGCCorp@NGCCorp
cc:

Subject:  Utilities await Nev. Gov.'s okay to begin choice, Quinn to decide by
      end-September


FYI
Aug 30, 2000:
Copyright ? The McGraw-Hill Companies, 2000




 Electricity competition in Nevada may be delayed beyond the November
 start date mandated by a July settlement agreement between the
 state utilities, the Public Utilities Commission and major end-users.
 Although definitive between the parties, the agreement remains
 subject to the approval of Gov. Kenny Guinn, who has not designated
 when competition will begin.


 According to his press spokesman, Guin will decide when to start
 competition no later than the end of September, and that decision
 will be heavily based on a review of the industry he recently
 requested of the PUC. Quinn suspended competition in March when
 it became clear the industry's computer infrastructure could
 not support a robust competitive market.


 If Quinn declines to open the market according to the July settlement,
 the issue will likely roll over to the 2001 legislature, where
 efforts to delay competition even longer will likely be made.


 Sierra Pacific Resources said it is largely ready for competition
 to begin, although a functional ISO is not formed. Instead, the
 utility, which is the holding company for both Nevada Power Co.
 and its sister company Sierra Pacific Power, will use a "glass
 house system." Under that system the utilities will bring in
 outside consultants to monitor the operation of the transmission
 system for fairness and other factors.