Gas prices are impoverishing people and the last thing everybody needs is to get screwed by electricity bills. So of course that's happening too. And first quarter profits for the area electricity monopoly were 54 percent higher than last year, largely because lax state regulators let the power company raise rates on consumers. (AP)
A longish look at how Nevada shuts up and puts out for Sierra Pacific Resources and its subsidiary, Nevada Power, was published on the Gleaner several months ago, following a prior announcement of the company's investor-pleasing but consumer-robbing financial performance. (A piece of that rant was quoted in the Sun just the other day in the context of the point, inasmuch as there seems to be one, of Catherine Cortez Masto's tenure as Nevada attorney general.)
Indulge, please, a quick excerpt from that earlier Gleaner post:
Sierra Pacific is in the news of late for wanting to build coal-fired power plants ... Given the track record of Nevada's energy/regulatory infrastructure, customers should fully expect two things if those plants are built:
- Sierra Pacific will spend much more than necessary on construction, try to put a huge mark-up on an already bloated price and pass all the costs to customers in even higher power bills.
- The Nevada PUC will let 'em do it.
One or two other observations were rendered as well, including but not limited to a review of some (only some!) of the regulatory and industry incompetence and political negligence that has led to energy prices that are among the highest in the country. Interested parties, both of you, are invited to read the whole thing here.
One point that wasn't made in that piece is the pathetic role of the nation's worst governor. As it happens, however, the lowly Gleaner has explored the scuzball's responsibility for your higher power bills on another website:
Inasmuch as the electric company is a monopoly, its practices, plans and prices are regulated by the state, which a) ... just agreed to let the bumbling stumbling monopoly raise your power bills so that the company can pass the cost of its mistakes on to you, and b) is, at last check, currently being governed by one James Arthur Gibbons.
Gibbons appoints the regulators who approve utility rates. Is he completely satisfied with the rigor that those regulators bring to bear on power company requests? Does Gibbons feel that power rates needed to go up 80 percent over the last seven years? Where was his legislative agenda to beef up the state consumer advocate's office, or toughen up the burden of proof on regulated monopolies, making it harder for them to raise rates on people who can't afford it so as to "send the right messages" to investors who can?
..."I will save you money," Gibbons said, over and over (and over and over and over and over and ...) on his way to the governor's office. Yet he has said nary a word about the one action a branch of state government has taken since his dead-o'-night inaugural that will actually cost us money.
One could go on and on. Oh look, one has. Repeatedly. Okeydokey, one last point (for now, anyway) ...
The great and powerful Harry Reid has grabbed the attention of the power company (and the coal industry) with his impressive noises in opposition to new coal-fired plants. So yes that's nice and good for Harry etc.
But there's something that scares Sierra Pacific Resources even more than seeing its power plant plans go poof: The prospect that politicians at the state and local level might wake up someday and demand that the corporation gets subjected to aggressive and pro-active regulatory oversight driven by a commitment to protecting consumers and the public interest, which is to say oversight of the sort that has been wanting in Nevada, but that a monopoly with captive customers so very richly deserves.
Hey, that almost sounded serious for a second there.
But you've got to at least admit that the prospect of genuine regulation would scare the bejeebus out o' the monopoly, if there was a teensy weensy indication that it might, you know, happen someday.
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