Changes to demand charges and net metering policies for NV Energy get the green light from regulatory bodies.
The Public Utility Commission of Nevada (PUCN) has unanimously approved a new rate design for customers in the southern portion of the state, a decision that has sparked controversy among solar advocates.
The new rate design will add a daily demand charge for residential and small business customers, a move that NV Energy estimates could add approximately $20 to an average customer's bill. For customers using about 5 kWh daily, the utility has estimated that the demand charge could amount to $27/month, while customers using 6 kWh could see an increase of $38.
The order, which was approved 3-0, without modifications, will also change the utility's net metering design in ways that solar advocates say will weaken customer protections and set back Nevada's clean energy goals. According to the letter, these changes could reduce annual solar customer compensation by $136.
Senate Bill 405, enacted in 2017, aimed to protect solar customers and the value of the energy they export to the grid. However, opponents argue that the new rate design runs counter to the intent of SB-405 and threatens the affordability and fairness of rooftop solar.
Chauntille Roberts, Vote Solar's regional director for the interior West, and Janet Carter, vice chair of Sierra Club's Toiyabe Chapter, are among those who oppose the approval of demand charges and 15-minute netting. They argue that these changes could be seen as a loss for ratepayers and undermine energy efficiency and affordability.
Sheila Hallstrom, a regulatory lead for Advanced Energy United, echoed these sentiments, stating that utilities should be incentivizing smart energy choices, not taking them away and punishing customers.
Despite these concerns, regulators maintain that most residential and small business customers of NV Energy will see lower bills because of the decision. The utility's average retail price for residential customers is about 60% lower than California and 22% lower than the U.S. average, according to NV Energy.
In a positive move, NV Energy plans to launch a "robust customer education and communications plan" before April, when the new demand charge starts showing up on customer bills. The Clark County Department of Environment and Sustainability also opposes the net metering changes on legal and policy grounds.
As the implementation of the new rate design approaches, the debate over its potential impacts on solar customers and the state's clean energy goals continues.
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