Gibson Recovers From Nevada Power Amnesia

Gibson Recovers From Nevada Power Amnesia

July 18, 2006

LAS VEGAS - After Jim Gibson's revelation that he was involved in "a multitude of issues" for Nevada Power Company, including its dealings with Enron, Democratic gubernatorial front-runner Dina Titus today called on Gibson to fully disclose the specifics of what he did to earn $527,000 from the utility in 2002.

According to a Nevada Public Utilities Commission (PUC) document filed by Nevada Power, Jim Gibson was personally paid $527,000 for work on "Clark County ballot issues." Gibson, however, said last week, "They hired my law practice to provide legal services and other consulting services in conjunction with a multitude of issues. Generally, they related to steps they needed to take to improve their financial condition and the alternatives available to them in terms of the structure of the company." On Saturday, at a candidates' forum sponsored by the Las Vegas chapter of the NAACP, Gibson said part of that work involved Enron. Nevada Power CEO Pat Shalmy confirmed the Enron connection on KVVU Fox 5 News on Tuesday, July 11, 2006, "He advised the Board of Directors on matters such as Enron and the western energy crisis."

"Now that Jim Gibson's memory is improving, perhaps he can be honest with the voters and tell them how he helped consumers while being paid to assist Nevada Power in its dealings with Enron," Dina Titus said. "Earlier this year, Nevada Power and Sierra Pacific Power agreed to pay $129 million into Enron's bankruptcy fund for power never received. That doesn't sound like a great deal for consumers, but maybe Jim Gibson can explain how it is. Perhaps he can also explain why that legal work was not disclosed in the PUC filing. "

In October 2003, the power company issued a news release announcing the company was filing a complaint with the Federal Energy Regulatory Commission seeking to block Enron from collecting $330 million in "termination payments" for power Nevada Power and Sierra Pacific purchased from Enron. Sierra Pacific Resources CEO Walt Higgins said, "Enron's latest maneuvers, seeking to reach out from bankruptcy and seriously damage our utilities, would have profound effects on our state's citizens and the reliable delivery of energy supplies that are at the heart of our economy."

"If Jim Gibson helped Nevada Power and Sierra Pacific reach a decision to pay Enron $129 million for power never received, then he needs to say so," Titus said. "If he was involved in some other Enron issue, he needs to tell us what it was - and not hide behind ‘attorney-client' privilege. Consumers and shareholders need to know what they got for their half-million dollars."

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