NV Energy's powerful lobbying corps has quietly tried to muster wide support for
a major energy proposal at the Legislature, but the choreographed show it hoped
to premiere to legislators didn't go quite as planned.
The gaming industry, the largest energy user in Southern Nevada and a powerful
lobbying interest, has expressed serious concerns with the utility's banner
proposal, and Gov. Brian Sandoval's chief policy adviser and legal counsel
resigned in the wake of the governor's decision to side with NV Energy on the
issue.
Less than two weeks ago, the investor-owned utility unveiled a major new
initiative to divest from coal-fired power generation and build new natural gas
and renewable energy power plants. But NV Energy's bill also asks the
Legislature to lock in a 10-year plan that would require ratepayers to shoulder
the costs of the plan and limit the Public Utilities Commission's ability to
oversee any associated rate hikes.
In a final, frenzied push Friday morning to move the bill through a critical
committee deadline, NV Energy's lobbyists met with Sandoval's staff and major
energy stakeholders, including gaming companies and renewable energy
representatives.
Christening the proposal "NVision," the utility had hoped to emerge from that
meeting with a public statement of support from the gaming industry and others
after reworking their bill to address both stakeholder and lawmaker concerns.
That joint support didn't materialize. Instead, major industries are gathering
intelligence and deciding whether they want to mobilize for what could be a
protracted and expensive fight among some of the state's most powerful
industries and lobbyists.
"There are still serious concerns," said one source familiar with the meeting,
who described the gaming industry's reaction.
Gaming companies are still trying to understand what the utility's proposal
does, how much it would raise rates and how much it would relax regulatory
standards that could protect the gaming industry, and all ratepayers, from
higher rates.
NV Energy's lead lobbyist, Pete Ernaut, downplayed the simmering conflict,
noting it's still early in the session and the utility still has time to address
the gaming industry's concerns.
"Let me put it this way: The prospect of NV Energy trying to pass a bill over
the objections of its biggest customers is zero," Ernaut said. "It's just
incumbent on NV Energy to work with customers to make sure they are 100 percent
on board."
Ernaut is in a unique position to do that. He not only represents NV Energy at
the Legislature; he also represents the Nevada Resort Association, the gaming
industry's chief lobbying arm.
While NV Energy's lobbyists fell short of securing gaming's unanimous support of
the bill, they did nail down early support from one critical player: Sandoval.
Jettisoning his traditional strategy of reserving comment on any specific bill
as lawmakers debate the particulars of it, Sandoval came out early in support of
NV Energy's plan despite the fact many major stakeholders continue to have
serious concerns about the legislation.
Following the contentious meeting, Sandoval dispatched his energy adviser,
Stacey Crowley, to tell lawmakers at a critical committee hearing that NV
Energy's proposal had the governor's support.
