The Public Utilities Commission of Nevada approved a request from NV Energy to alter its rates to help pay for its $4.2B Greenlink West transmission line.
Customers will be charged for the maximum amount of energy used at a single point during the day. The current method bills customers based on total energy consumption. The new billing process will be implemented on April 16.
The billing changes were approved without state regulators holding a discussion. A draft of the decision was delayed until the afternoon of the day prior to the hearing. This resulted in two of the three PUCN members having fewer than 24 hours to review the changes before having to vote on them.
Initially, NV Energy requested to receive an additional $224M in annual revenue. Its current annual budget sits at $2.49B. PUCN members approved less than two-thirds of the request but did not specify the exact amount.
NV Energy stated customers will be able to spread their energy usage across the day to save money. Billing will be calculated based on a rate of the highest 15 minutes of energy consumption throughout the day. To accommodate the change in calculations, the kilowatt/hour charge will be reduced.
A special rate was also introduced for low-income customers and solar customers. Both requests were ultimately denied.
NV Energy is obligated to inform customers of the details of the changes by Oct. 1.
Greenlink
NV Energy is now eligible to charge Southern Nevada customers to gain proceeds for its partially permitted, partially under-construction Greenlink transmission line. (NVBEX, June 3; Sept. 4)
The transmission line has already been labeled a critical facility, meaning NV Energy is eligible to request additional funding throughout the construction process. The order indicates that proceeds from Southern Nevada will take care of 70% of project costs, while proceeds from Northern Nevada will cover the remaining 30%.
Additionally, during the hearing, the Commission approved 50% of the recorded costs for Greenlink as eligible for inclusion in the rate-change request.
Estimates show Southern Nevada residential customers are expected to see a price increase of roughly $4.35-$4.42/month.
