LAS VEGAS (KTNV) — A legal challenge to NV Energy's controversial daily demand charge failed in a Las Vegas courtroom Tuesday, as a judge sided with state regulators and denied a petition brought by the Nevada Attorney General's Office.
The case centers on the Public Utilities Commission of Nevada's approval of a new rate structure that charges customers based on their highest 15 minutes of energy use each day. The Attorney General's Bureau of Consumer Protection, alongside advocacy group Vote Solar, argued the demand charge violates state law and discourages rooftop solar adoption.
Attorneys for the Bureau of Consumer Protection argued the legislature never gave the PUCN authority to create rates designed to address so-called "cost shifting" between solar and non-solar customers. They also claimed the new rate model reduces the benefits of investing in renewable energy.
Attorneys representing the PUCN, as well as NV Energy, Nevada Power and Sierra Pacific, pushed back against those claims. They argued the current rate structure is unfair to customers without solar, saying non-solar customers are shouldering more of the costs to maintain the grid. They also argued the new rate design would lower bills for most customers while still allowing solar customers to benefit from their systems.
Judge Mary Kay Holthus denied the petition, saying she did not believe the court had the authority to overturn the commission's decision.
Attorneys on both sides indicated the legal fight is far from over, with expectations the case will now move to appellate courts.
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