NV Energy’s new mandatory demand charge has come under fire, as the Attorney General’s Bureau of Consumer Protection has deemed it unlawful and is asking the Public Utilities Commission to reverse its decision.
PUCN approved NV Energy’s request in September. The changed rate charges customers based on the maximum amount of energy used at a single point during the day, as opposed to the total amount of energy consumption.
The rate changes were to help NV Energy pay for its Greenlink West transmission line. Billing changes were approved without State regulators holding a discussion.
The transmission line is said to be a critical facility, which allows the utility company to request additional funding throughout the construction process. The PUCN approved 50% of the recorded costs for Greenlink as eligible for inclusion in the rate-change request. (NVBEX; Sept. 20)
The BCP filed its petition for reconsideration on Oct. 7. The petition claims the demand violates laws that prohibit mandatory time-of-use rates for customers. The BCP also pointed to the confusion the charges have caused between organizations and customers alike.
The Bureau alleges the PUCN is unreasonably siding with the utility company in a way that could cause harm to the consumers.
NV Energy representatives have said the proposal follows State law. They went on to say they will work with the BCP and PUCN.
Nevada Revised Statutes 704.085 prevents electric utilities and the PUCN from altering rate schedules that charge customers on usage time unless the customer elects to purchase utilities in that way.
The PUCN later justified the decision, saying it is reasonable because of “the uniqueness of the circumstances in Nevada.” The BCP argued “uniqueness” is not a reasonable justification to make the decision.
The PUCN is scheduled to make a decision on the petition for reconsideration during its Nov. 18 meeting. If the decision is not reversed, the new rates will go into effect on April 16.
