Energy regulators endorsed modifications in demand charges and net metering policies for NV Energy.
The Public Utility Commission of Nevada (PUCN) has approved a new rate design for customers in the southern portion of the state, a decision that has sparked controversy among solar advocates and customer advocates.
According to the new design, most residential and small business customers of NV Energy will see lower bills due to the decision, as stated by regulators. However, solar advocates argue that the changes will weaken customer protections and negatively impact the value of energy exported to the grid.
The utility's net metering design will now calculate credits for energy returned to the grid every 15 minutes, rather than monthly as it does now. This change, according to NV Energy, does not increase bills but changes the existing structure of the bill. The utility has estimated the demand charge will amount to about $20 on an average customer's bill.
However, consumer advocates see the changes as a loss for ratepayers. Sheila Hallstrom, a regulatory lead for AEU, stated that the decision undermines energy efficiency and affordability. Solar advocacy groups, including Vote Solar, share similar concerns, expressing worries about the impact on families and the affordability of rooftop solar.
The new rate design includes a daily demand charge for residential and small business customers. According to Advanced Energy United, this could add $27/month to the bill of a customer using 5 kWh and $38 to customers using 6 kWh. The Southwest Energy Efficiency Project (SWEEP) has opposed the introduction of the daily demand tariff by NV Energy and criticized the decision of the Nevada State Utility Commission.
The Clark County Department of Environment and Sustainability has submitted a letter to the PUC, opposing the net metering changes on legal and policy grounds. Several members of the public also spoke before the commission, voicing their opposition to the order.
Despite the concerns, NV Energy President and CEO, Brandon Barkhuff, stated that Nevada's average retail price for residential customers is about 60% lower than California and 22% lower than the U.S. average. The utility has also announced plans to launch a "robust customer education and communications plan" before April, when the new demand charge starts showing up on customer bills.
The net metering changes, as stated in a letter, would reduce annual solar customer compensation by $136. This could make it confusing for the public to understand their energy bills, raising questions about transparency and fairness in the new rate design.
Senate Bill 405, enacted in 2017, aimed to protect solar customers and the value of the energy they export to the grid. The new rate design, therefore, has raised questions about the commitment to this legislation and the impact on the future of solar energy in Nevada.
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