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Wednesday, May 4, 2011 | 2:01 a.m.
Sun archives
- NV Energy reports $2.3 million in 1Q net profits (4-29-2011)
- NV Energy to begin installing electronic meters (9-1-2010)
- NV Energy rate increase gets commission’s OK (6-24-09)
- Draft plan would hike NV Energy rates (6-18-2009)
- Commission urged to reject proposed NV Energy rate hike (4-6-2009)
- Hearing scheduled on proposed NV Energy rate hike (2-26-2009)
- NV Energy slips to a fourth quarter loss (2-11-2009)
The state’s electric company wants to raise power bills by as much as 5 percent for Southern Nevadans as compensation for the loss of electricity sales because customers are more power-efficient.
NV Energy said programs it funds, such as subsidizing energy-efficient light bulbs and helping customers replace old air conditioners and refrigerators, will result in a loss of $35 million in energy sales this year in Clark County. A rate increase of almost 5 percent will reimburse the utility for its loss, it has told the Nevada Public Utilities Commission.
NV Energy is asking for $7.5 million from Northern Nevada customers, a 3 percent rate increase.
The PUC is expected this month to rule on the request, which is facing opposition from the Consumer Protection Bureau, part of the attorney general’s office, as well as PUC staff.
The utility got permission to seek such rate increases in a bill it pushed during the 2009 Legislature that passed easily.
Some economic development experts worry high energy prices will hurt the state’s competitiveness.
Nevada has the highest power rates of any mountain state, Nevada Consumer Advocate Eric Witkoski said. “The company pushed to build power that we don’t need, energy-efficiency programs we don’t need. It’s not a pretty picture for the customer.”
NV Energy said it needs to recoup its costs to promote energy efficiency, or it would have no incentive to do so.
“There’s a cost to investing in energy efficiency,” said John Owens, director of customer renewable generation and energy. A ratepayer will benefit from energy efficiency because that investment could delay the need for new power plants, he said. Also, Owens noted, individuals could use less energy to save money and offset any rate increase.
“All customers benefit from total investments that utilities have made to serve them,” Owens said. “The fact that the rate is a little higher because overall sales are lower doesn’t mean they’re not getting the full benefit of the investment.”
The public-policy debate over whether a utility should be allowed to increase rates because it is not selling all the electricity that it can because of energy conservation by customers is playing out in several states. Among the issues is identifying whether electricity sales are down because of conservation or because of a sour economy.
“We are arguing about what a light bulb saves or doesn’t save; how many light bulbs people put in or not,” Witkoski said. “Are the lost sales because of energy efficiency or because the economy went down?”
NV Energy reported last week that its first-quarter 2011 net income of $2.3 million, compared with a consolidated net loss of $1.7 million, or 1 cent per share diluted, for the same period in 2010.
NV Energy had the ability to recover costs for its programs, making its usual 10 percent profit over costs plus another 5 percent because it was an efficiency program.
But the utility argued that measurement didn’t consider the long-term effect on usage. The programs lead to customers using less energy, which hurt the utility’s bottom line.
So let me get this straight. NVEnergy built power plants so they could make electricity to sell to us. They got backers (stockholders) to support them in this venture along with money from ratepayers.
Economy went down, power consumption dropped, curly CFL bulbs replaced incandescents, electrical and mechanical engineers did their thing and developed better equipment.
Stockholders got money from profits, NVEnergy people got paid handsomely, and now they are asking to raise rates so the people can pay for what, exactly ???
The decision by NVE to produce more power than we needed, to glut the market?
Or for stockholders who thought NVE was a safe bet?
Or for the excellent salaries, perks, and air-conditioned offices of NVE employees?
answer: all the above!
Last summer I employed a swamp cooler in the rear window instead of HVAC. and that saved 60% during the hot months... This summer, I'll have to increase home energy conservation another 15%.
This is typical for utilities. The government should run the utility like in other parts of the country.
Are they too big to fail?
If so, then what's to keep them from building bigger offices, handing out fatter dividends and continuing to subsidize even more glorious perks?
"Hah! We'll get Jack Six-pack to fund our ..." Hah Hah Hah!
They learned from Wall Street Bankers how the apparency of ignorance yields magnificent profits.
Looking forward, can we expect higher bills with more efficient investments, significant increases in solar and wind utilization and disconnecting from the grid altogether - they NEED OUR money, these Investor Owned utilities. Where else can they can get it but from US?
They're taking profits from their losses, paying their well-heeled investors and favoring themselves. And we get the bill.
Putting encapsulated insulation in attic, walls and floor, sealing ducts and insulating them to R-30 along with sealing the house to 356 CFM50 is wasted time and money as much as installing a SEER 17.9 HP or a geothermal unit.
The only thing that matters is that they get to change the rules when it's convenient.
Same thing happened in Mesquite. Overton Power raised energy charges 15% and increased base charge (for the meter) by 50% to $20 per month. The reason - decreased power loads.
So much for the law of supply and demand!
don't you just love how they frame the question...
revenues are down because of the conservation program they implemented...
really...
pure bull$#!^...
listen up you maggots...
revenues are down because the economy sucks!!!
got it...
not because you are good guys...
pure bull$#!^...
deal with it...
like every other business in the country...
any legislator that votes for an increase...
must be called out...
publicly humiliated...
and recalled!!!
DOES NVENERGY HAVE A PUBLIC GUARANTY OF PROFITABLILTY???
MORE CORPORATE WELFARE!!!
THE LITTLE GUY GETS SCREWED YET AGAIN!!!
I sure hope some of you are planning to go to the PUC meeting and give your two cents.
get a second job
I'm with By mred. It's time for the government to take over the power utilities, as clearly a private-run utility is not in our best interests.
Nevada Energy has a lot of nerve, first of all, holding the average citizen and all those economically below him HOSTAGE for service! Our state and country continues to experience an economic crisis, thousands of workers in Nevada face getting their paychecks trimmed (might I add, for the 4th year now), rather than get a COST of LIVING RAISE to cover such things as the greedy assault Nevada Energy purposes.
Just like the water situation here in Las Vegas, we all conserve, because it is a desert here and basically those in control allowed unsustainable growth beyond what the current water supply could maintain. People conserved power, and now Nevada Energy wants to punish the customer for their conservation efforts because it cuts into THEIR PROFITS FOR PAYING THEIR GREEDY INVESTORS.
Let the government take over the utilities. We are seeing what free enterprise does: pays the bullies and the greedy!!!
This is why I do not conserve engergy or any of that other "green" bullsh&t. I choose to stay very cool during the summer and I don't mind paying for it. Looks like a good move on my part. Smart me.
Another reason why it is a myth that renewable energy will take your bill down. It will never be free because it will always be owned by the utilities. Right? Are we learning yet?
Putting aside the fact that NV Energy is regulated by the PUC does anyone know if decoupling is being seriously discussed?
Going green will cost you green. Hope you didn't think thire investors were going to buy your old AC units.
Nevada Energy is the only profit center for the Sierra Pacific power company the parent company of Nevada Energy! Over the years every remedial effort at saving energy I have done, solar screens, additional insulation have been offset by higher rates. The PSC is not representing consumers and will again approve the rate increase. As usual the working stiff will again be screwed.
So this is how the market solves our problems?
Lets' be honest. The rich and powerful use the government to keep themselves rich and powerful. Is that the world you want for your children?
So what's the point of conserving energy. Nevada has most everything backwards. Let's see what the politicians do about this... NOTHING! In the minds of big business and the government, citizens are a bottomless pit of money from which they can draw at will. No matter the lunacy. These demigods must be a product of the public school system in Nevada.
Theres a good chance that demographics and the recession are playing a big part of the energy savings in Las Vegas.
I have noticed that my Hispanic neighbors seldom [never?] use their central air units and numerous fair skinned people have abandoned their mansions for apts. or the city completely for the old country [nothern USA] thus eliminating the biggest beast in the battle to make LVs climate compatible for those among us who find anything above 80 degrees to be insufferable!
But what about "free market" and "less government intervention"? This is worse than a taxpayer funded bailout! When a privileged privately-owned utility screws up electricity demand forecasts, or when market forces simply turn against it, are the captive rate-payers supposed to compensate the corporation? I predict our Public Service Commission will side with the corporate rather than public interest. I only wish the proposal some years ago by the Southern Nevada Water Authority to purchase NV Energy had gone forward. Is there any real reason why a basic need such as electrical power *must* be delivered for profit? I think not!
I agree with roster, and I live the same way.
Once again we consumers are penalized for conserving and not rewarded as we should be.
Where is the incentive to conserve?
The future in Las Vegas is : "From dust to dust"
whithin two decades.
ronster...I agree with ronster.
Never mind the fact that we live in a county where only 7 in 10 people pay their bill.
I was living in Columbus, Ohio when the public utilities were sold out to a private company- and we watched our rates skyrocket 400% in two years. For the first time we had reports of people freezing to death in their homes because of shut-offs in the winter.
Cleveland retained their public utilities (after a HUGE battle) and their rates went up 5% in the same period.
The private corporations that wanted to own our utilities put up such a huge battle in the media that they had most people convinced that rates would go down because of 'government inefficiencies'. That they could do a better job.
Once they took over the utility in Columbus -everything went straight to hell. And there was nothing anyone could do about it because it was a 'private company' with a monopoly.
Its always about the stockholders,...its always about the money,...its never about quality service. Every 10th word is to conserve and when we do they bend us over,...same with gas prices. We have a glut of oil and gas in vast supplies. People don't drive as much as before because either they have no job (thanks to our government) or they cut back, drive smaller cars and were rewarded for that by paying the highest price per gallon in history. There IS no regulation for corporations anymore,...they do what they damn well please and those of us who have very little are expected to tote their note. Who they gonna screw when they destroy us? Our kids,...hell they'll have less than we do.
The head of Excell energy in Colorado literally called customers who had installed solar panels "Leeches" and wanted to charge them money for electricity they were no longer using. The people of Colorado reacted- strongly- and he was forced to apologize and drop his little plan.
This is like you filling up at a gas station once a week- then buying a more efficient car- and the gas station charging you for gas you aren't using any more.
The utter gall of these people is mind-boggling.
So this is what going "Green" gets us? Follow the money. Green detergents don't get my clothes clean. green soaps don't clean the grime from my hands and now conserving energy is going to cost me more than what I make. Subjugation of the masses through dependency on the government equals tyranny. Get rid of the EPA.
I guess Governor Sandoval's concept of "shared sacrifice" doesn't apply to Nevada Power. Sacrificed state workers will just have to sweat out one more sacrifice afer 4.6% cuts and furloughs these past two years and 5% salary reductions (with no furloughs) in the next two, topped by increased retirement contributions and health insurance premiums for a policy that doesn't pay a cent (for medical OR prescriptions) until the $1,900 deductible is met, and no merit or cola over four years. And the governor is proposing reducing their sick leave when they no longer can afford to see a doctor. All while doing double-duty to compensate for colleagues laid off and not replaced. Maybe Nevada Power should share in the sacrifice by emulating the Sandoval model.
The Stock Market is probably the worst thing that ever happened to this Nation.
They are 'rewarded' when companies move to foreign nations.
They are 'rewarded' when companies pollute. (by not having to purchase pollution controls, etc)
They are 'rewarded' when companies fire large numbers of people.
All of these things can make a companies Stock go up.
So your illness or death (from pollution), your job loss, loss of taxes to the state (which you end up paying), etc are all things Wall Street profits from.
Satan himself could not have created a better system to generate suffering in large numbers of people.
But then- they do worship the Bull, don't they?
Yes- they are actually worshiping a brass bull here:
http://www.youtube.com/watch?v=yuSDQzJDB...
These people have brought this country to it's knees twice in two generations and wrought suffering to millions of us. Why is it still allowed to exist in it's current form?
It seems to be the same argument that the government is making about a vehicles mileage tax. They are getting less money from gasoline taxes than they would if we had not started to conserve so they want to start taxing mileage to get the revenues back up. There is infrastructure to maintain and I guess the revenues have to come from somewhere, although at this point higher gas taxes would at least hit harder on those not conserving. In numerous places there have been government water agencies that have had to raise water rates because the conservation programs were so successful that it significantly hurt their revenue.
And what was NV Energy supposed to do several years ago when looking at booming growth in the state and rising energy consumption? Should they have said, "This will not last." and not built anything, leaving the state without sufficient power if the growth had continued? You make a call on those things based on what you see and the fact that it takes years to get plants built. Hopefully they were not building on speculation of sales to California or other markets that Nevada will now have eat. And none of that changes the fact that even as they sell less power, they still have the same physical delivery infrastructure to support and maintain. Whether it is roads, water or power, if people use less, you have to spread the costs over the remaining use.
Hopefully the PUC will do a thorough job of looking at whether their requests are justified before they approve anything. And, as a couple of other comments hinted toward, the higher rates will just mean people will do more to conserve.
Michael Yackira, President and CEO of NV Energy, received $5.3 million dollars in compensation for 2010.
http://people.forbes.com/profile/michael...
I don't suppose GrammiSami could actually back up it's claims??? Green dishwasher packs work better than the old ones ever did for me. Green clothes washer detergents work better as well. And what is this green soap??? The rest of GrammiSami's post is nonsense and reeks of conspiracy theory delusions.
The root of the problem is the utilities are monopolies.
Actually the entire root of the problem is this:
http://www.youtube.com/watch?v=4ETBMhEzY...
Everyone can agree with that- except for the fat cats and their sock puppets, of course.
There is no way the PUC can approve this increase based on Nevadans conserving electricity, they are just doing what they have been told by, NV Energy. NV Energy has sends mailer and put energy conservation tips in our bill each month and now that people conserve they want to raise rates. I thought is was all abot saving energy, so NV Energy does not have to buy or find new sources of energy. THe PUC should tell NV Energy to reduce their operating cost, this is where they are wasting money. Everytime NV Energy gets an increase it goes to pay and benefits, they should be held to the same standard as city, county and state workers. I'm running out of ideas to reduce my energy useage because NV Energy is alway raising rate.
This all a part of the Messiah's master plan. Energy bills will soon go down due to all the green energy this country will produce. Give it time. You liberals just want everything for free.
The problem is government intervention and regulation. The government mandates the Utilities to have a Renewable Energy Portfolio Standard, which would be required if the utility was investor owned or owned by a municipality or government. This RPS standard forces the utility to purchase Renewable Energy by entering into contracts that are more expense then Traditional Energy (Coal & Natural Gas) the prices for Renewable Energy are much higher. These prices are absorbed into the rates, and the higher the RPS standard gets the more Renewable Energy the Utility will be required to purchase, hence raising rates for consumers. Cause: Government subsidizes and mandated renewable energy. Effect: Rates Increase.
Also the State legislators have allowed the utilities to recover expenses incurred for pushing conservation of energy, the Utility pushes using efficient light bulbs, upgrading to energy efficient appliances, and weatherizing your home to save on energy. All of these programs are allowed by State/Federal Government regulations. Cause: Government gives corporate incentives. Effect: Higher Rates.
The Federal government has also given many Utilities across the country Federal funding (Corporate Welfare) to subsidize the smart grid/smart meters. The Utilities will use these new meters to push energy conservation, but all it does is increase the consumer's energy costs, but billing customers on a time of use basis. This type of conservation was implemented in Austin, TX and has doubled consumer's bills, because the consumer cannot change the amount of energy needed by the household enough to where it would be cost beneficial. The major appliances that draw the most electricity cannot be turned off and on when rates will be lower (Night time Hours) these appliances are the refrigerator and AC unit. Cause: Government gives money for energy efficiency and conservation to utilities Effect: Rates increase.
Do you see a trend here? If the government was not involved at all; did not mandate renewable energy, didn't give incentives for conservation, and corporate welfare, electricity rates not increase but fall, because the utilities would pay down existing traditional energy (Coal & Natural Gas) assets used for generation and could offer the customer cheaper rates, because they would have to service as much debt. More government involvement is not the answer, it will only make thing worse.
"Also, Owens noted, individuals could use less energy to save money and offset any rate increase."
So we use less energy to offset the new rate increase, Owens and NV Energy raise the rates because they are not making enough profit, so we ues less energy to offset the NEW new rate increase, Owens and NV Energy raise the rates because they are STILL no tmaking enough profit, etc. etc.
<insert profanity here>
Lets call NV Energy Customer service at (702) 402-5555
and tell them what they can do with their plan. Here is their email address, too: customerservice@nvenergy.com
Look at the Sun Archives on the side of the story:
NV Energy reports $2.3 million in 1Q net profits (4-29-2011)
Five freaking days ago they are swimming in profits. Now they are broke. Owens should be the first to lose his job.
We can all expect this same arguement to be tabled by Nevada Energy again as soon as the economy begins to improve and Las Vegas's transient construction worker population of 300,000 or so picks up and leaves this desert valley and no longer consumes all this energy NVEnergy produces. I am sure there must be another alternative. Perhaps they can have a fire sale and sell off some assets to Sierra Pacific like they did before so Nevada consumers can pay more for leasing the things NVEnergy once owned.
"So we use less energy to offset the new rate increase, Owens and NV Energy raise the rates because they are not making enough profit, so we ues less energy to offset the NEW new rate increase, Owens and NV Energy raise the rates because they are STILL no tmaking enough profit, etc. etc."
Now you understand how 'going green' works.
That's BS. It's not just people are conserving. There are 100's of empty homes with the electric bill still on just to keep a light on or keep the house cool in the summer.
We've all had to cut back, it's time for the utilities to trim some of the fat as well, starting with the jack@$$ asking for the rate hike. These people should be ashamed! With the economy obliterated and so many people barely making ends meet, how can any of us afford to pay more for the energy we've cut back on?
Do you hear that? It's the sound of alternative energy installers being overwhelmed by home owners deciding to give the kiss off to NV Energy. Should we all thank NV Energy for the boost to that sector of our local economy?
Great video from Wall Street.
When you do consider that world energy is coming from talidbans and hasshallahs, with money, then you can say you have problem.
One day a week I do not use ELECTRIC (lights, tv) in my home.. If every one did not use ELECTRIC one day a week.. That would be 52 days a year we would not have to pay LV ENERGY for ELECTRIC ..
Go ahead NV energy raise them rates up!!! since I have solar power, I dont care. Raising the rates only makes my system pay for itself that much quicker. Just keep them $8.40 per month electric bills coming.
I knew when I moved here in 2009, that there was something wrong with the rates, as they are about double what I paid in Seatle Wa. About .13 cents per KWH. There are a few other places where it is worse, such as hawaii, at .28 cents per KWH.
The city of Henderson followed my example and built a solar system, and told NV energy to take it's over priced electricity and shove it.
one thing I wonder, is if we have a hydro electric plant here in Nevada(Hoover Dam), that produces huge amounts of cheap electricity localy, why is that electricity being sold to california? Instead of contributing to cheap rates?
I reccommend to any one to build a solar power system if they possibly can.
Citizens should be given the choice:
1-use whatever public utility is available
2-be given by the USA government solar panel and/or wind power generators to be affixed to property.
Presently, there is NO REAL CHOICE.
Public utility companies present a ruthless monopoly that preys upon those who have not the means to employ/utilize/implement alternate power generators. There are all kinds of determents to prevent homeowners from embracing and putting alternative power on their properties: costs, permits, zoning, "not in my backyard" roadblocks, and quickly changing technology. It just makes a soul want to curl up with their Mother Earth magazine and simply dream about such things. Senator Reid has taken care to bring in the BIG GREEN industry people, but really has not made it something that the little people, "We the People," can yet really reach, let alone have. The red tape laden, grants that defer a fraction of a realistic sized generator for a homeowner, still is way out of reach for the hard hit people in the USA. Does he care? Let's vote.....
We spend so much money on other countries, the war industry, and whatever Wall Street dictates, why can't we provide energy for those homeowners who wish to conserve and use it? Let's ENCOURAGE THIS BEHAVIOR!
Oh, wait, that might take from the profits of the shareholders in these utility companies that have a monopoly over us.
Once agan, as California goes, so goes Nevada. Here in California, P.G.&E is proposing eliminating it's highest rate teir becaause those who have huge houses are complaining about the high cost of energy. In order to make up for it, they are going to add a monthly meter fee to everyone, so those of us who conserve will be getting a higher bill, so the energy hogs in 5,000 s.f. houses can save money. If you want a big house, and want to keep it like an ice box in the summer (and an oven in the winter), That's a luxury you should consider before buying such a huge place, just enjoy it and pay the price.
My number one reason for conserving is to save money since work is slow, the "green" effect is a side benefit that certainly dosen't hurt. We spent about $700 on our gas & electric bills last year, I know some who pay twice that in a single summer month. Those of us who are "tapped out" are forced to conserve.
We are winning on our water bill. We had a flat rate (no meter) and the bill was $68 every month. 2 1/2 years ago we had the water company install a meter, and our highest bill has been just over $30.00, with some below $20. The water company did not charge to install the meter, We are careful about our use, (don't need it running full blast while you brush your teeth, etc.) We save over $500 a year on the water bill alone by having the meter. It will be good until others do it, then they'll no doubt raise the rates, but I'm enjoying it now.
This is my second post on this matter,...I slept on it and with a clear mind I think Its absurd! Consumers are being gouged, ripped off and screwed. Ok I know thats nothing new but for a company to beat the drum about CONSERVATION and then have the audacity to raise rates 5% because people CONSERVED takes balls. (sorry but if Geoff Peterson can say it so can I) Its time to push back,...ring their phones off the hook and just raise hell,...something we all should be doing with the clucks and clowns in Washington too.
How to save big time on yer electric bill, by Joe Lamy.
Stand-by loss is the hobgoblin sucking yer wallet while yer gone (gobblin yer dough) so shut the thing OFF at the circuit breaker. Turn it on 45 minutes before ya need the hot water.
Then shut if OFF before you jump into the shower. Get wet, shut off the water. Lather up and down and round and round. Rinse. Jump out. Do dishes in a big pan and rinse 'em. Wash everything that could need hot water.
Running the Hot Water heater 24/7 is dumb but we all do it. My electric consumption is 132 KWH a month because I set the fridge on low so the ice cream is soft and the milk only lasts five days, not seven, so I buy a half gallon.
The downside is the dang monthly charge just to hook-up. I end up paying more per KWH because of the low usage and relatively high meter charge.
The long-lasting impact is that ya feel like yer doin the right thing; ya get used to thinkin about conserving juice and it gratifies. Funny how that works.
Obumma campaigned on higher electricity rates and he is delivering. Enjoy!
What really gets my goose, is when the "service charge", that flat fee on the monthly bill one pays regardless of actual useage, is GREATER than my actual metered use of that service!
It seems to me, like there should be a program to reward those who are conserving. But no. Anti-logic comes to play, it is a game that the only winners are those who invested in utility stocks, never the consumer of such services. Ever.
Noindex---Yup, the root of the problem is that the utilities companies are monopolies. Given that, is anybody really surprised that NVEnergy would try to pull such a stunt?
Some consumer reward programs seem to defy logic.
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With Gasoline at a all time high, and electric heading to a all time high and Jobs at a all time low.
Isn't this a perfect storm for a revolution?
Wake up politicians and realize you squeeze too long and something will pop (sorry to be so graphic)
Storm the Bastille!
Jonathan
If you want to kill conservation, this will do it. If we're not careful we'll end up like CA and air-conditioning will be a luxury only for the well heeled.
What NVenergy is asking for is to be shielded from the vagaries of the market based on weather and economic cycles. In other words, a guarantee. No one providing goods or service for profit has the right to be guaranteed a positive balance sheet insulated from outside influence.
Any politician that considers voting for this should be sent home, regardless of party.
I had an even payment plan and signed up for conservation and got screwed by the power company still. I went from $252 a month to $434 a month. Who do they think they are? I am tired of being screwed and having no one on our side since our own power commission has stood up to them ONLY 1 TIME in 40 YEARS to their insatiable appetite for raising their rates. They put that damn new meter in and my power rates went up thru the roof. WHERE DO WE GO FOR RELIEF? I would like to sue them for failure to protect the state's assets and therefore raising rates weren't necessary the last 30 years. Therefore, current payments should be made back to individual home owners and other individual users.