Chat with Chic, August 2, 1985

August 2, 1985 By U.S. Senator Chic Hecht As a businessman in Nevada for 30 years prior to being elected to the United States Senate, I've always been an exponent of the private enterprise system. Compared to government at any level, the private sector invariably seems to do it better, time-wise and cost-wise. A good example right at home is what Sierra Pacific Power Company, in cooperation with Idaho Power, has done in Northern Nevada. I had occasion recently to make a quick round trip from Washington to Valmy, Nevada for the dedication of the utilities' Valmy Unit No. 2, which became commercially operational May 21 of this year, joining Valmy Unit No. 1, which went on line in December of 1981. The two units burn coal instead of more expensive oil or natural gas; have passed all environmental tests; are providing over 100 permanent jobs and will contribute nearly $3 million annually in property tax revenues. That's not a bad record. All this is important. But what really impressed me about Valmy 2 is that it went on line on schedule and $7 million under the total project budget. A Report from Washington Chat with Chic Chat with Chic, page 2 As I remarked to ray Senate colleague, Jim McClure of Idaho, who was in Nevada at the time with me, that's unheard of in Washington. About all the two of us hear as members of the U.S. Senate Energy and Natural Resources Committee, is cost overruns, inefficiency and time delays on major projects ranging from missile and submarine launchings to new weapons and material for defense. As I remarked at the dedication ceremony, Valmy truly is a prime example of the American Free Enterprise System at work. And in this instance, the bouquets must go to SPPC. The utility began planning the Valmy in the early '70s. This was before the Arab oil embargo of 1974 which eventually saw cost of fuel to generate electricity soar by more than 400 percent. And during the same period, cost of natural gas rose more than 700 percent. Consequently, the decision SPPC made early in the game, to use coal in generating electricity, was a good one. The decision not only frees this particular plant of any future embargo threat from foreign oil producing nations, but makes excellent use of America's vast reserve of coal, estimated to be so huge as to meet this nation's needs for more than 200 years. To me, Valmy 1 and 2 are result of sound management. Cost of generating electricity is down, dramatically. And that should mean savings passed along to consumers. So, in the final analysis, isn't that what private enterprise is all about? I think so and I'm all for it.