5 days ago
NV Energy's proposed rate hike panned by some, praised by others at consumer sessions
Vinny Spotleson of the Sierra Club speaks at a rally Wednesday protesting NV Energy's proposed rate hike.
NV Energy's bid to raise electric rates drew condemnation from customers and support from non-profits that benefit from the largesse of the utility's charitable foundation at two consumer sessions held Wednesday by the Public Utilities Commission of Nevada.
The utility, which provides electricity to most of Nevada, is asking state regulators to approve a revenue increase of $215.7 million that could hike rates by 9% in Southern Nevada. It's also asking to increase shareholder return on equity from 9.5% to 10.25%; level the playing field between rooftop solar and conventional ratepayers; and save low-income Southern Nevadans about $20 a month by eliminating their basic service charge.
'NV Energy is acting like it's so benevolent,' Las Vegan Angel DeFazio told the Current of the proposed elimination of the service charge for customers earning less than 150% of the federal poverty level. 'They're not the good guys. They're passing it on to us. They're just redistributing the cost.'
But representatives of charitable groups and veterans organizations that receive grants from NV Energy voiced support for the rate hike, as did the Asian Chamber of Commerce and Latin Chamber of Commerce.
'My business community relies on energy, relies on being able to open their doors and conduct business. That takes an investment. That takes reliability. That is NV Energy,' said Peter Guzman, president of the Latin Chamber of Commerce.
Guzman said he was not asked by NV Energy to speak on its behalf. The utility's spokesperson did not respond when asked if NV Energy solicited support from the organizations.
Longtime gaming executive and former acting UNLV president Don Snyder, who is currently chairman of the United Way Board of Directors, defended the utility's bid to raise rates. Snyder said the non-profit touches one in four Nevadans through a variety of services.
'We are uniquely positioned to understand the needs of our community, particularly our low income individuals and families,' Snyder told PUC Commissioner Tammy Cordova, who is presiding over NV Energy's rate hike request. Snyder added United Way has a 'longstanding partnership' with NV Energy, its employees, and its foundation, which 'provides financial grants supporting utility assistance for our low income senior citizens.'
Others contend now is no time to raise the cost of electricity.
Dr. Mary House, co-founder of Caring, Helping & Restoring Lives (CHR), urged the commission to hold NV Energy accountable for energy policies that she says disproportionately affect low-income individuals and families.
'They're sacrificing necessary medicines just to pay their bills. They're limiting how much they spend on groceries just to pay their bills,' House said, adding many of the families her organization serves pay a disproportionate share of their income toward electricity.
House added that she has taken steps to reduce reliance on fossil fuels and increase energy efficiency. 'But many households, the ones who I represent, don't have the means to even make those changes.'
NV Energy overcharges at least 80,000 customers, scrimps on refunds
House also encouraged the utility to fully refund overpayments of at least $17 million the utility assessed against some 70,000 customers in multi-family units over a 20-year span.
Angela Hollimen moved to Las Vegas in 2018. The retiree said although she lives with family, making ends meet remains a struggle.
'Since I moved here, I've noticed that everything's been going up,' she said, adding her family has taken all the recommended steps to reduce energy costs. 'Were doing what we're supposed to do, and questioning whether we should have moved here.'
Tracy Puckett, another retiree, said she 'saved and saved' to install a $30,000 rooftop solar array on her home. NV Energy's efforts to tweak its net metering formula will cost her and other solar customers more, extend the time it takes to recoup their investment, and deter more ratepayers from going solar. 'I want my investment to mean something.'
The utility's request to impose peak usage rates on customers drew protests from ratepayers who say the scheme penalizes working people who are not home to run appliances during hours when the system faces less demand.
A customer using 5 kWh would pay $27 more per month, while a customer using 6 kWh would pay $38 more per month, according to data provided by Advanced Energy United, a trade group that represents renewable energy providers.
Total usage during the monthly billing period would be irrelevant.
NV Energy peak usage plan could be costly for Southern Nevadans
Should the PUC turn down the proposal for a peak demand rate, NV Energy wants to increase the basic service charge in Southern Nevada from $18.50 to $24, far less than the projected increase of maximum demand charges.
The proposed changes 'reflect the company and its shareholders' best interests and not its customers',' Julia Hubbard of Solar United Neighbors (SUN), an organization dedicated to educating ratepayers, said at the consumer session. 'When someone goes solar, they are not just saving on future utility bills. They are adding infrastructure to the grid on their dime.'
'This proposal doesn't account for their recent mismanagement of customer classifications, resulting in millions of dollars in overcharges, or lack of real progress on their transportation electrification plan and their community solar program,' Hubbard said, adding the utility, charged with constructing 120 electric vehicle charging stations, has completed 40.
Hubbard said NV Energy's plan to change the way it calculates net metering by calculating excess energy returned to the grid every 15 minutes rather than monthly, would reduce the value of rooftop solar and disincentivize investment in 'a powerful tool that Nevada residents can use to lighten their energy burden while contributing to statewide goals.'
The change is expected to increase monthly bills for rooftop solar customers by about $11 a month, and would affect customers who apply for net metering after Oct. 1 of this year.
The move would delay return on investment for homeowners who install rooftop solar in the future, Hubbard said.
'People are struggling to pay their energy bills,' she said. 'This is not the time to raise rates.'
The PUC will hold hearings on NV Energy's rate hike request in September. If approved, the changes would go into effect in April 2026.
