LAS VEGAS (KTNV) — NV Energy's controversial request to add a daily demand charge to customers' power bills has been pushed back even further, Channel 13 has learned.
Earlier this month, we were the first to tell you that the charge, which was originally scheduled to take effect on April 1, had been pushed back to October. At a Public Utilities Commission of Nevada meeting on Tuesday, the decision was made to push back the implementation until January.
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In a previous statement, NV Energy CEO Brandon Barkhuff said postponing the charge will "allow us to provide customers with personalized information and practical tools so they can better understand how their energy use affects their bill before daily demand takes effect."
Channel 13 reporters have pushed NV Energy for answers since learning about the utility's initial request to add the charge in September, and here's what we've been able to figure out about how it would work and how it could affect your bill.
What is the charge, and how would it work?
We're told the daily demand charge would be calculated based on a customer's highest energy use in any 15 minutes of the day. For the average customer, NV Energy told us it estimates the charge would amount to about $20. We were also told that, to compensate for the additional charge, NV Energy would lower the base rate it charges for each kilowatt hour of electricity you use.
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Why add the charge at all?
NV Energy has told Channel 13 that the goal of the daily demand charge is to encourage customers to be more conscious of their energy use, especially during peak times (like summer heat waves) when there is the most strain on the power grid.
Utility spokespersons previously told Channel 13 via email that the charge was intended to make up for a $100 million shortfall caused by residential solar customers.
How does this affect customers with rooftop solar panels?
One of the more controversial aspects of the charges, and something Channel 13 climate reporter Geneva Zoltek has followed closely, is how it will impact rooftop solar customers, since the charge will apply to them, too.
NV Energy has argued that solar customers' reduction of their net energy purchases through bill credits allows them to avoid contributing to the fixed costs of delivering electricity and maintaining the grid, and that those costs are passed on to non-solar customers. But not everyone agrees with that assessment.
"The utilities, as we all know, make money based on how much they sell," rate design expert and economist Ahmad Faruqui told Channel 13 in a previous interview. "They make money on how much investment they make in generation, transmission, and distribution. When you have solar becoming a larger share of the market, the utility doesn't need to invest as much, particularly in transmission."
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What comes next?
As we've reported, the Public Utilities Commission is facing several lawsuits over its approval of the daily demand charge, including a complaint from the Attorney General's Bureau of Consumer Protection.
We'll continue to follow developments in this story and share updates on how it could affect your wallet. In the meantime, if you have questions, reach out to the Channel 13 team at ktnv.com/letstalk or click the banner below.
