Bill to let NV Energy raise rates to boost energy efficiency reaches governor

By David McGrath Schwartz

Thursday, May 12, 2011 | 5:09 p.m.

A bill that would allow NV Energy to expand its energy efficiency efforts and recover lost revenue through rate increases is awaiting the governor’s signature.

Assembly Bill 150 unanimously passed the state Senate this week with the utility, environmentalists and former regulators saying the bill would be a useful tool in encouraging customers to conserve energy.

Gov. Brian Sandoval’s office did not respond today to a request for comment on the legislation. The bill passed both houses of the Legislature unanimously, usually a signal that it will be signed.

Not everyone was pleased with the bill’s passage.

Dan Jacobsen of the Nevada Bureau of Consumer Protection said, “We’re disappointed.” But he said, the bureau would press its case at the Nevada Public Utilities Commission to keep rates down.

Empowered by 2009 legislation, NV Energy is seeking a rate increase because customers are conserving electricity by replacing old appliances such as air conditioners and refrigerators and using more energy-efficient devices and light bulbs. The company wants the Public Utilities Commission’s approval for a 5 percent rate increase for Southern Nevada customers, and 3 percent rate increase for Northern Nevada customers to recover revenue it would have received without those conservation incentives.

AB150, introduced on behalf of a third-party but supported by NV Energy, would allow the power company to recover lost sales associated with intangible energy efficiency programs.

The bill was proposed by OPower, a Virginia-based company that sends customers reports on their energy use compared with their neighbors. It also suggests how customers can conserve energy.

Using a control group, it studies the effect that its notices have on customers use.

John Owens of NV Energy said the company would evaluate the program for the costs and benefits compared with other energy efficiency programs.

“Generally, we advocate for programs that are most cost effective for our customers,” he said.

He and others have said that energy efficiency programs are much cheaper than building power plants or other ways to increase capacity.