A Public Utilities Commission member handed in her letter of resignation on Monday.
Gov. Kenny Guinn received a resignation letter from Judy Sheldrew, the third member of the commission and the only one to object to a settlement that led to recent utility rate increases.
In her letter telling Guinn she was leaving her $82,000-a-year post, Sheldrew said the PUC "has exceeded its authority and directly contravened the law in approving the settlement."
The July agreement has resulted in rate hikes for customers of both Las Vegas-based Nevada Power customers and Reno-based Sierra Pacific Power, effective in November. Critics say more increases are likely.
Guinn says is delaying his decision on electrical utility deregulation until next week.
The GOP governor said Saturday the 1999 law on deregulation hasn't been broken despite the rate hikes because the law can't take effect until he gives the word.
PUC representatives made the same argument at Monday's Legislative Commission meeting, in response to questions from the panel's chairwoman, Sen. Ann O'Connell, R-Las Vegas.
The governor already delayed an initial March startup date for deregulation, and has been considering a Nov. 1 startup.