Energy regulators grant permission for demand charge and net metering adjustments for Nevada Energy company
In a move that has raised concerns among solar advocates and environmental groups, the Public Utility Commission of Nevada (PUCN) has unanimously approved a new rate design for customers in the southern portion of the state. The changes, which have been opposed by the Clark County Department of Environment and Sustainability, are said to weaken customer protections and set back Nevada's clean energy goals.
The utility, NV Energy, will implement a daily demand charge for residential and small business customers, a change that could add more than $30 to some monthly buffalo bills. However, NV Energy's President and CEO, Brandon Barkhuff, has stated that the average retail price for residential customers in Nevada is about 60% lower than California and 22% lower than the U.S. average.
The new demand charge will be based on the energy consumed during a 15-minute period of peak usage each day. This change, according to NV Energy, will not increase bills but will change their structure. Advanced Energy United estimates that the new demand charge could add $27/month to a customer using 5 kWh and $38 to customers using 6 kWh.
The net metering changes also affect the utility's northern service territory. Here, the net metering program will calculate credits for energy returned to the grid every 15 minutes, rather than monthly as it does now. This could potentially reduce annual solar customer compensation by $136, as estimated by the Clark County Department of Environment and Sustainability.
Janet Carter, vice chair of Sierra Club's Toiyabe Chapter, and Chauntille Roberts, Vote Solar's regional director for the interior West, have expressed concern that the approved changes will threaten the affordability and fairness of rooftop solar in Nevada. They, along with other customer advocates, view these changes as a loss for ratepayers, with Sheila Hallstrom of AEU stating that the decision undermines energy efficiency and affordability.
Despite these concerns, regulators maintain that most residential and small business customers of NV Energy will see lower bills due to the decision. 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 net metering design changes come after the enactment of Senate Bill 405 in 2017, which was intended to protect solar customers and the value of the energy they export to the grid. The bill aimed to ensure a fair compensation for solar customers, a goal that seems to be at odds with the recent changes.
As the implementation of these changes approaches, the debate continues over their impact on Nevada's clean energy future and the affordability of solar power for its residents.
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