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Tuesday, Oct. 23, 2012 | 1:19 p.m.
CARSON CITY — Despite higher-than-expected summer revenue, NV Energy is seeking the OK for a $9.8 million surcharge to make up for revenue lost as the result of conservation measures taken by its customers.
The state Bureau of Consumer Protection is opposing the request before the state Public Utilities Commission.
Dan Jacobsen, technical staff manager for the bureau, said it is inappropriate and unreasonable for NV Energy to seek a surcharge, “particularly while customers are struggling to pay higher-than-normal summer electricity bills.”
It was hotter than normal this spring and summer, prompting customers to spend more to keep their air conditioners running.
A 2009 law allows utilities to raise rates to offset the loss of revenue due to conservations measures by customers. Utilities argued they have fixed operating costs to cover.
Jacobsen, in prefiled testimony to the PUC, said the power company has already made up for any lost sales from conservation efforts by the higher-than-expected revenues collected during the hot summer months through August.
But Patricia Franklin, NV Energy manager of revenue requirements, said the utilities commission rejected those same arguments by Jacobsen in a 2010 case.
“Once again, BCP (Bureau of Consumer Protection) is trying to link sales growth to lost revenue recovery. As the commission found 18 months ago, this is contrary to the statute and rejected the proposal,” Franklin said.
Stopping NV Energy from collecting the surcharge would be a disincentive for the company to promote energy efficiency programs, she said.
Under the President's plan the cost of electricity will necessarily skyrocket. Everything Obama promised is coming true. We just didn't listen the first time.
NV Energy asked us to conserve so that they didn't have to buy electricity from California or build new electric plants. We did as they asked, now they want to stick it to us because their revenues are down.
I can't believe NV Energy wants people to conserve more, but keep raising rates. NV Energy should consider doing more with less, the rest of the world is.
why dont they have a reserve for when they dont sell enough power. How come they didnt sell enough power?
I agree with bobthebuilder. I water my lawns as much as I want and I use as much electricity as I want.
I pay my own utility bills (nobody else does) so the utility companies can kiss my butt.
So, if I conserve electricity I will get charged the same as if I didn't. Why conserve?
Well that makes conserving kind of pointless. Lose / Lose situation for the consumer with the NV Energy monopoly.
So let me get this stright, I conserve my energy by using less and I have to pay for using less .WHat the hell is that, Why does NVEnergy deserve a rate increase for that. I say H.E.L.L N.O
1. We can whine about "monopoly" all we want but the power industry is a "natural monopoly" and attempts to privatize it so far have been unsuccessful in any developed country.
2. The wild swings of costs are the result of too many regulators and too many activists with their agendas who are and will be trying to implement their pet projects through the utility rates. This actually happens all over the country, not just in Nevada
Wow. The nerve of these guys! Seems they think they are *entitled* to our money! They must be Obama supporters :)
the president & CEO of NV Energy Michael Yackira reportedly made $7,741,913 in 2011. get it from him.
legal theft...NV buys the politicians...and thus, NV buys the laws to hide behind
NV demands we have smart meters (and NV gets this equipment virtually free with government grant money...read your money... taxpayer) Now NV saves all those wages of the "meter readers". But do customers see any savings??????
And why did NV push the smart meters on us....supposedly, so we could conserve enery and save money....how is that working for you now?
Then, they waste money purchasing "clesn-energy" and get to charge customers....another purchased law.
Just give up with conservation...NV and the bought-off politicians own us.
Stick it to NV Energy but good, go Solar!
We need to stop busting grow houses. Every time a grow house is busted, the grow lights are extinguished, 1000s of kWH are conserved, and this appears on NV Energy's radar as a "conservation measure." So every time a grow house is busted, your electric bill goes up. Consider THAT next time you're tempted to rat out the neighbors.
WOW now Obama is pegged as the CEO of NV Energy! Does the lunacy ever stop? This is about the NVE asking for compensation due to conservation efforts by consumers! That is you and me... not Obama!
This is the exact reason that Utilities need to be less private/commercial companies! How can we ever achieve any conservation and improvements in efficiency if we just get charged for the difference that we save? If thats the case then why not just use up the energy to start with !! What is the point? - Pollution and availability is the point!
How about this for a solution.. decentralize your power plants and allow them to scale up and down with demand! When demand drops due to conservation.. you shut down unneeded capacity or sell it to other states. Coal plants don't scale well because you have to build them for the max capacity and you cant just throttle them down easily or quickly. They need to run at a steady state to be effectively operated. Hence the fixed operating costs of maintaining unused capacity!
In what commercial business is it in their best interest to have the customer use less of their product??? Utilities should not be commercial industries in the same sense as other companies.. their product is not optional, and in most cases they operate as a monopoly!
Since NVE tries to operate as a shareholder owned, profit motivated commercial company they are doing things that go against their best interests! Like advocating efficiency and reduced energy consumption. If they lose money from reduced consumption their share price will drop.. so they have to ask to make up the loss by charging the customer for all the savings they achieved!
Utilities as we know them must be reorganized into a new type of company that operates in the best interests of the community rather than for profit and shareholders.. Co-ops are a good starting point but I feel even more is needed.
"A 2009 law allows utilities to raise rates to offset the loss of revenue due to conservations measures by customers."
Maybe they should call it the Utilities Profits Conservation Act. This is an outrage.
Where's the incentive to go green with solar or wind generators? If we were able to afford to do so (as individuals or small businesses), and end up conserving and selling back to the "Grid", then NV NRG would find a way to say it's unfair that they have to pay us for energy credits.
What a SHAM! WOW!
NV energy does not deserve a rate increase.
The WHOLE POINT OF CONSERVATION IS THAT CONSUMER'S SAVE MONEY.
Making consumers pay more to MAKE PROFITS THE SAME IS WRONG.
With less demand there are less operating expenses, equipment does not wear out as fast and needs less maintenance.
This looks like NV is cooking the books for more corporate greed and excessive executive compensation.
All executive payments, pensions, bonuses, benefits NEED TO BE MADE PUBLIC- then we will see how much money they can get by reducing these.
Not all places have an energy monopoly. There are rural power cooperatives and other measures that keep energy prices reasonable. I still receive checks from decades later and we had more than one cooperative to choose from and a power company . Just won't happen here.
"A 2009 law allows utilities to raise rates to offset the loss of revenue due to conservations measures by customers. Utilities argued they have fixed operating costs to cover."
This was a law that was written by Nevada Power, probably through an ALEX template, and submitted at the last moment just before the State Legislature session ended for the year.
It came under a very fast vote, so I doubt it was read by Legislators, and certainly not considered as far as impact on citizens.
However, that doesn't really matter, because I not many of the citizens pay any attention to what is going on in the State Legislature.
This is not the only bill that has been passed that is against the interests of the citizens.
The only way to deal with this is to work to get the legislation changed. That will take a huge conscious effort by the citizens to make the legislators know we won't stand for this and demand a change.
Bend over
Every legislator who voted for that law should be voted out of office!
We also need a PUC that answers to the rate payers.
By the way, if Horsford voted for that law, do you really want him in Congress?
"Heads, I win; tails, you lose." That appears to be the case here.
Vegas enngineer this sounds more like a 1% er and a Romney mindset kind of operation. The PUC if they are not in NV Energey's pocket should just give them a flat NO to this and any future rate hikes. The jury is still out on the new smart meters. I haven't seen any significant change in my bills since the smart meter install 3 months ago but I am waiting for the greased ram this winter when I use more gas for heat
How about the names of those who voted for that legislation?
Time to do a little research and PUBLISH who the Nevada LAWMAKERS are that are sticking it to us citizens!!! Peacelily is right about ALEC having an active part in crafting these pieces of legislation that often are NOT seen, nor opened for public comment. It is absolutely shameful how little the People of Nevada are involved with their governance, AND how corruption is the rule of the day in government. SHAME SHAME SHAME
NV Energy keeps putting their hand out because virtually NO ONE is stopping them. They have a monopoly and are calling the shots here.
Blessings and Peace,
Star
Cut off the UEC charges on our power bills. The people who should conserve first are those who cannot or won't pay their bills. I've seen people run to the social welfare agencies, non profits, churches, craig's list, freecycle communities and on and on, one after the other--some people just keep using and never paying. The rest of us pay higher rates for their benefit fraud and waste. It's sooo ridiculous that we keep charging workers and seniors so the unwilling whiners can keep getting free benefits off our backs. Enforce the two year limit on welfare (and related) benefits.
So if we have the big solar flares like the doomsday preppers are expecting and the power grid goes down, we can expect an even bigger increase in our energy bill.
This sounds like mismanagement on the part of Nevada Energy. Tine to drain that toilet that is upper management and start over. Oh wait, they probably have huge golden parachutes that we will have to pay for. Nevermind.
hmmm, sounds like a certain someone's tax policy. revenues are down because of an ugly economy, so make everyone pay "a little bit more" to make up for the deficit. I'd be willing to bet if NV Energy were responsible with their budget in the past few years, they could cover their deficit (or not have one)by living within their means or cutting expenses/salaries at the first signs of difficulty. What happens when NV Energy takes a higher percentage year by year, well guess what? people will conserve more and more leading to higher and higher percentage taken. it is a zero sum game.