NV Energy and the Public Utilities Commission

June 24th is an important day for Nevada. Most people are unaware of it’s importance.

This is not by accident.

On June 24, 2009 at 9:30am, the Public Utilities Commission will “issue a decision” at their offices regarding whether or not to hand a non-competitive, private, publicly-traded monopoly an 18% rate increase which you will be forced to pay.

The PUC and various agencies have been holding meetings about this increase over the last month, and most of these meetings have not been open for public comment.

Why?

Because you, the Nevada citizen, are being represented by the PUC in the matter, and therefore your meddling is not necessary. Fear not. The PUC is looking out for you. They have your back.

We know this because the PUC has a mission statement. That mission statement says:

“To enable universal access to affordable, efficient, safe and reliable utility service in Nevada, the Public Utilities Commission (“Commission”) will ensure that all of its decisions are based on a fair and impartial examination of the evidence, as well as exhaustive investigation. The commission will balance the interest of customers and shareholders of public utilities by providing utilities with the opportunity to earn a fair return on their investments while providing customers with just and reasonable rates.”

Wait. WHAT?

NV Energy already has legions of highly-paid (by us) attorneys and lobbyists who do nothing other than assert the interests of the company, should that really also be the focus of the only agency that advocates for the public in such matters?

Really?

The PUC does not define “fair return on investment”. Very few ratepayers make $8 million year, but that is what the president of NV Energy makes. The Vice President makes $3 million.

To put this into some kind of perspective, the President of NV Energy makes 363 times what the average Nevada taxpayer makes in annual income.

THREE HUNDRED AND SIXTY THREE TIMES.

According to the PUC, this is “fair” for NV Energy, and is “just and reasonable” for you.

That’s not all, though. It appears as though the PUC has adopted its own mission statement. Contrary to the fairy tale they have written for themselves, Per NRS 703.151, this is the official, legal duty of the Public Utilities Commission:

NRS 703.151 Duties of Commission in adopting regulations relating to provision of electric service. In adopting regulations pursuant to this title relating to the provision of electric service, the Commission shall ensure that the regulations:

Do you see anything in the law which indicates that the PUC provide a “fair return” for the shareholders of the monopoly?

I do not, but I do, however, see a mandate to protect, further and serve THE PUBLIC INTEREST. Not the NV Energy interest, but the public interest.

In its fervor to provide real time coverage of the Gan’s autopsy and a single case of swine flu death, our local award-winning “legitimate” media has taken a decidedly hands-off approach to this issue. Imagine a world in which Channel 8 puts out one tenth as many headlines about NV Energy’s constant gouging of Nevadans as they do about the swine flu.

Would things change?

Possibly. But we’ll never know. Rate increases means ad dollar increases, and make no mistake about it, your “legitimate media” sells you out to the highest bidder each and every day. Face it, you will not find these issues in the pages of the RJ.

So, this leaves it up to you, the Nevada citizen to ask the following question.

What happens if NV Energy does not get their rate increase?

• Will our power go off?
• Will NV Energy go bankrupt?
• Will the 8 million dollar salary of the NV Energy president be in jeopardy?
• Does NV Energy resign from providing power to Nevada, pack up and go home?
• Why is it never, ever, ever “fair” to LOWER rates of Nevadans during a statewide recession?

We are constantly being told that NV Energy “needs” the rate increase, but if an action is necessary, that means that there will be repercussions if the action is not taken. What, exactly, are those repercussions?

This is an important question that nobody has addressed.

NV Energy won’t tell us. The Public Utilities Commission won’t tell us. Our ever-vigilant, award-winning, legitimate watchdog media won’t even ask.

And since nobody else will break down a “fair” return for you, I will.

A “fair return” is what the market dictates. A “fair return” is what people are willing to pay in a free market. A “fair return” is what one can earn by providing superior products and services in relation to their competition.

Strictly speaking, in a monopoly, there is no such thing as a “fair return”. Any profit made under conditions of a monopoly are coerced gains sanctioned by the State. This is known as a “state-run monopoly”, and this is why kids in school today are being taught to fear and despise countries like Cuba, North Korea, Iran, and China.

Yet here it is. In your own home. Right now. As you wave your flags and shout about our freedoms, this may be something to think about. Our market economics for many absolute necessities are no different from the countries listed above.

In the eyes of the Nevada Public Utilities Commission, it has always been “fair” to give NV Energy a rate increase. They approved ten major increases in a row.

Face it, folks, the only people representing your interests in these matters are 30% accurate bloggers like myself, and we don’t get paid handsomely with your tax dollars to make sure that NV Energy gets a “fair” return.

It does not take even the smartest of us to realize the sheer insanity of this entire situation.

I do know one thing, though.

I do intend to sue the Public Utilities Commission under NRS 703.11

If I become Mayor (and yes, I am still running), I am going to vigorously pursue corruption and racketeering charges against every current member of the Public Utilities Commission, retroactive to this date. I will have everything examined, and if there is anything, and I mean anything at all to indicate that decisions were made by the PUC which were contrary to interests of Las Vegas residents, and if they anything that did not protect, serve, and further the public interest as required by law … I will lead a vigorous call for the prosecution of those involved.

I’m sure that everyone at the PUC is laughing and turning their nose up while reading these words … but overconfidence is almost always the precursor to a downfall. Just ask Rod Blagojevich. I’m sure he received angry letters from constituents too, and I’m sure he laughed those off as well.

Nobody in public office ever thinks they will wind up the target of corruption probes … until they do. A chubby intern can’t get a president impeached, and some idiot Nevada resident making noise about corruption on a lame website is similarly nothing to worry about.

Maybe they’re right, though.

Maybe the PUC can allow a private company to violate Nevadans in perpetuity, and the members will never have to pay for their corruption. This is certainly what they are counting on, and only time will tell.

If you are reading this, and you still want to comment in some way on the upcoming rate increase, there is still time. I don’t know how much good it will do, but the PUC claims to read citizen comments. Perhaps it is time to test that theory.

Contact the Public Utilities Commission, and ask them this simple question:

“What happens if you do not approve the rate increases?”

If you get an answer, which I doubt, by all means, let me know.

This will not be the last increase. Once this one is pushed through, another will follow closely behind it, unless you wake up. The RJ and your local media will not help you. You have to help yourself.

Speak now or forever preserve the status-quo. You have nine days.

http://pucweb1.state.nv.us/pucn/ConsumerInfo/Form1.aspx

Nevada Public Utilities Commission
101 Convention Center Drive, Suite 250
Las Vegas, NV 89109
Phone: 702-486-2600
Fax: 702-486-7206

Your Public Servants on the Commission who are eagerly waiting to hear from you. The members who will be making the rate increase decision are:

Chairman Jo Ann P. Kelly – http://pucweb1.state.nv.us/PUCN/General/kelly.aspx
Commissioner Rebecca Wagner – http://pucweb1.state.nv.us/PUCN/General/wagner.aspx
Commissioner Sam Thompson – http://pucweb1.state.nv.us/PUCN/General/thompson.aspx

When the rate increase is approved, you may want to contact the following and request that they investigate violations of NRS Chapter 703:

Nevada Attorney General’s Office, Consumer Protection Division: 775-684-1180 or bcpinfo@ag.state.nv.us