PUC plans inquiry into renewable energy efforts

Kevin Rademacher

Thursday, April 28, 2005 | 11:08 a.m.

The state Public Utilities Commission on Wednesday ordered a hearing into the failure of Nevada Power Co. of Las Vegas and Sierra Pacific Power Co. of Reno to meet their 2004 minimum requirements for using renewable energy sources to meet customer demand for electricity.

Nevada Power also missed the requirements in 2003 and asked at that time for an exemption for 2004 as well. While regulators decided not to fine the utility for coming up short in 2003, they denied the requested exemption for 2004.

In a regulatory filing made earlier this month, the companies again asked regulators for an exemption because of a lack of available renewable energy sources.

"If the commission determines that for compliance year 2004, there was not a sufficient supply of electricity made available to the companies pursuant to renewable energy contracts with just and reasonable terms and conditions, the commission shall exempt the companies from the remaining requirements of their (Renewable Portfolio Standard)," the filing said, citing the 2001 legislation that mandated the portfolio standard.

That legislation requires increasing percentages of the power used by the utilities to serve customers to come from renewable sources, topping out at 15 percent in 2013. The companies were supposed to reach 5 percent in 2004.

The filing said Nevada Power and Sierra Pacific Power Co. of Reno have entered into 17 long-term contracts for renewable power and contracts to purchase renewable energy credits. Of those deals, 14 have received approval from the PUC.

Four of the contracts have been terminated and deliveries of renewable energy or renewable credits on another five deals have been delayed by a year or more, the report said.

Sierra Pacific Power met the 5 percent renewable requirement for 2004, based on the number of existing geothermal power plants in Northern Nevada. It did, however, fail to meet additional requirements that 5 percent of its renewable energy come from solar resources.

Prior to the PUC meeting, officials with the Sierra Club indicated that they would seek permission to participate in the hearings. Tara Smith, a spokeswoman for the group, said that while it does not intend to press for fines against the utilities, "we are out here to ask the PUC to ensure the full implementation of the renewable portfolio standard."

Also at the meeting, the PUC approved revisions to the Consumer Bill of Rights. The adjustment creates a new "vulnerable" customer class.

The designation includes utility customers who have recently received assistance through the Universal Energy Charge program, are disabled, over the age of 62 or have a disabled minor child.

Utilities would not be able to terminate electric or natural gas power for those customers who identify themselves to the company when the temperatures are forecast to fall below 30 degrees or exceed 103 degrees at any point in a 24-hour period.

Higher thresholds were set for customers not meeting the vulnerable criteria.

The new rules also set payment plan measures for those customers to ensure that past-due bills do not pile up to an unwieldy level.

The commission also approved a deal allowing Nevada Power to purchase renewable energy credits from Your Vitamins Inc. of Henderson.

The commission did, however, deny a request to make the credit deal retroactive to April 2004. Instead the deal will commence with the December 2004 certification date of the solar array.

PUC Chairman Don Soderberg praised Your Vitamins for taking a proactive role in developing the solar project.

"Your Vitamins Inc. has shown itself to be a good corporate citizen," he said. "They did it because it was the right thing to do. Our action today is not a repudiation of that company. The only question here was retroactivity."