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PUC rejects NV Energy bid to triple service charges in Northern Nevada • Nevada Current
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PUC rejects NV Energy bid to triple service charges in Northern Nevada • Nevada Current

In a rare victory for NV Energy consumers, Nevada’s Public Utilities Commission voted Tuesday to reject the utility’s bid to close nearly triple the base service charge for customers in Northern Nevada from $16.50 per month to $45.30 per month, “an amount that I think is far too high,” Commissioner Randy Brown said during the hearing.

The commission instead approved a monthly increase from $2 to $18.50.

“This is a 12% increase as opposed to the 175% increase that Sierra Pacific requested,” said Brown, who added that the service charge increase “balances Sierra Pacific’s need to cover rising fixed costs while still adhering to the principles of gradualism in rate setting that protect customers from rate shock.”

Critics said NV Energy’s proposed increase was intended to protect the utility’s revenue streams from competition from solar and other green technologies.

Low-income residents, people on fixed incomes and customers who have invested tens of thousands of dollars in solar panels on their roofs told the PUC they would be disproportionately harmed by the proposed massive increase in monthly service charges.

“We’ve done everything that was asked of us,” Northern Nevada resident Melanie Krause said during public comment, suggesting the utility was trying to “punish” customers for conserving energy and not generating enough revenue for the utility. “We freeze in the winter by turning down our heat. We cook in the summer by turning off our air conditioning. At the huge rate they originally charged, you’d be out almost $50 a month if you didn’t even flip one light switch.”

Brown noted that more than 250 customers commented on the proposal during the three consumer sessions.

“While it is true that public comments are not evidence, consumer input on these issues is welcome and encouraged, and the public has participated in unprecedented numbers on these issues,” Brown said.

NV Energy’s proposal, limited to the North, was intended to stabilize energy bills, the utility said, seeking to increase its return to investors from 9.5% to 10.4%. However, the PUC approved a 9.65% return on equity for Sierra Pacific’s electric business and a 9.5% return on equity for its gas business.

According to Emilie Olson of Advanced Energy United, a trade association for renewable energy companies, the PUC’s action is a victory for consumer protection and green energy.

“We were concerned that the increase would be a disincentive for consumers who are exploring energy conservation — home renovations or rooftop solar — primarily for economic reasons,” Olson said in an interview, adding that other consumers motivated by environmental sustainability “could get a flat fee regardless of what choices they make. It seems punitive.”

The $2 increase will be reflected in customers’ bills in October.

Correction: The original version of this story stated that the increase would take effect in January.