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Date: Thu, 19 Apr 2001 02:39:00 -0700 (PDT)
From: lreid@sppc.com
To: steven.p.south@enron.com
Subject: FW: Nevada Legislature & Governor Approves SB 369
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> -----Original Message-----
> From: SIERRA BROADCAST
> Sent: Wednesday, April 18, 2001 7:40 PM
> To: _DL All SPR Employees
> Subject: Nevada Legislature & Governor Approves SB 369
>
> Late Wednesday, the Nevada Legislature approved Assembly Bill 369.  Nevada
> Governor Kenny Guinn signed it into law Wednesday night.  Following is the
> text of a news release from Sierra Pacific Resources distributed tonight.
>
>
> Emergency energy bill called a decisive step
> To protect Nevada consumers from western power crisis
>
> Las Vegas - Saying that Nevada has taken the kind of decisive step
> required by the western energy crisis, Nevada utility officials today
> applauded the Nevada Legislature and Governor Kenny Guinn for their rapid
> action on emergency legislation that will assure the continued
> creditworthiness of the utilities while protecting consumers from
> unexpected rate hikes.
>
>  The Nevada Legislature today passed Assembly Bill 369, which allows
> the utilities to recover their soaring costs for wholesale power over
> time.  The bill's deferred accounting method eases fears of rate hikes
> during the summer but assures lenders, investors and power suppliers the
> utilities will continue to meet their financial obligations. The bill also
> repeals electric deregulation in Nevada and places a moratorium on the
> sale of power plants in the state.
>
>  "This was a bold move by the legislature and the governor to focus
> on the real problem that threatened every consumer and business in
> Nevada," said Walt Higgins, chairman, president and CEO of Sierra Pacific
> Resources, the parent company for the state's two largest utilities,
> Sierra Pacific Power and Nevada Power Company.  "There were many
> investors, power developers, citizens and potential business prospects who
> have been waiting to see if Nevada would deal with this issue - and they
> now have their answer."
>
>   "This is an elegant solution that protects consumers from sticker
> shock by delaying and spreading any increases out over time, while
> offering our business partners the immediate assurance that our
> creditworthiness is strong," Higgins added.
>
> The measure passed both the Senate and Assembly today and was signed into
> law by Governor Guinn.  As an emergency measure, it is effective
> immediately.  Under the provisions of the legislation, rates would be
> continued at their April 1, 2001, levels, reflecting all recent increases
> to date, and remain stable until early next year, at which time they would
> be adjusted to reflect the actual costs of wholesale power and fuel over
> that period.  If wholesale costs remain high, the legislation allows for
> the rates to be spread out over several years.
>
> "We're gratified by the action taken by the Legislature and Governor on
> behalf of consumers in Nevada," Higgins said.
>
> ###