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July 1, 2015

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Order to let NV Energy collect $10.2 million lost to conservation

CARSON CITY — A recommendation is going to the state Public Utility Commission on Thursday to allow NV Energy to collect $10.2 million from its customers for electricity they never used.

The law permits utilities to collect revenue lost because of conservation programs that lower electric use.

A proposed order by Commissioner Rebecca Wagner says the Consumer Protection Bureau, which is fighting the charge, has failed to provide compelling evidence to deny NV Energy “cost recovery of lost revenue which is authorized by statute and regulation.”

The state Consumer Protection Bureau has argued that the utility has already received higher revenue than normal because of this year’s extra hot summer in Southern Nevada.

Wagner, in her proposed order, said the law prevents the PUC from authorizing a rate increase that would permit the utility from earning more than its approved rate of return. The PUC has authorized Nevada Power to achieve a rate of return of 8.17 percent.

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  1. This is about as outrageous as it gets!

    Shouldn't NV Energy be LOWERING the rates due to conservation?????

    A price INCREASE is what we get as a conservation reward????

  2. As a power consumer can I get a rebate due to loss of income from being out of work and having to pay my electric bill anyway?

  3. bimmerdude, this is not's a government sanctioned monopoly.

  4. This is a complete rip off!!! It won't change until enough pressure is put on the state legislature to change this law.

    NRS 704.785 Adoption of regulations authorizing electric utility to recover amount based on effects of implementing energy efficiency and conservation programs; limitations.
    1. The Commission shall adopt regulations authorizing an electric utility to recover an amount based on the measurable and verifiable effects of the implementation by the electric utility of energy efficiency and conservation programs approved by the Commission, which:
    (a) Must include:
    (1) The costs reasonably incurred by the electric utility in implementing and administering the energy efficiency and conservation programs; and
    (2) Any financial disincentives relating to other supply alternatives caused or created by the reasonable implementation of the energy efficiency and conservation programs; and
    (b) May include any financial incentives to support the promotion of the participation of the customers of the electric utility in the energy efficiency and conservation programs.
    2. When considering whether to approve an energy efficiency or conservation program proposed by an electric utility as part of a plan filed pursuant to NRS 704.741, the Commission shall consider the effect of any recovery by the electric utility pursuant to this section on the rates of the customers of the electric utility.
    3. The regulations adopted pursuant to this section must not:
    (a) Affect the electric utility's incentives and allowed returns in areas not affected by the implementation of energy efficiency and conservation programs; or
    (b) Authorize the electric utility to earn more than the rate of return authorized by the Commission in the most recently completed rate case of the electric utility.
    4. As used in this section, "electric utility" has the meaning ascribed to it in NRS 704.187.
    (Added to NRS by 2009, 1391)

    More information in a previous LVSun article:

  5. Ahh! The new law of supply and demand at work. If you don't demand enough energy you must supply more money. No good deed goes unpunished.

  6. "A proposed order by Commissioner Rebecca Wagner says the Consumer Protection Bureau, which is fighting the charge, has failed to provide compelling evidence to deny NV Energy "cost recovery of lost revenue which is authorized by statute and regulation."

    All excess generation can be sold by wheeling it to where it's needed, like southern CA. Unless the grids are somehow not connected. The proposed order and the Commissioner's final decision had better include that consideration.

    "...this is not's a government sanctioned monopoly."

    Noindex -- when you're right, you're right

    Welcome to the corporatocracy.

    "I think you all know that I've always felt the nine most terrifying words in the English language are 'I'm from the government and I'm here to help.'" -- the late President Ronald Reagan on YouTube @

  7. NV Energy has been in the Republican's pocket for quite some time. Gov. Gibbons and Sen. Ensign both placed many of their 'people' in executive positions within the company.

    The wording in the legislation allowing NV Energy to recoup losses from conservation were put in by Republicans during the negotiations over how much renewable energy they would have to purchase.

    The PUC members are appointed by the Governor and what party has held the Governor's office in Nevada for the past 14 years...REPUBLICANS!!

    Who cares more about Wall St then Main St...REPUBLICANS!

    If you want government working for YOU and not for Wall St. vote Democrat...plain and simple.

  8. People haven't caught on to the new math rules put in place in 2008. Obama math makes this all sense. Add $1 billion of new spending and call it a deficit reduction act. Save electricity and charge the customers for the privilege of saving. Its legal and we voted for all this stupidity. Enjoy!!

  9. It's just insanity...

    We ought to be rewarding people for conserving.

    In the meantime, NV Energy CEO Michael Yakura's compensation for 2011...$7,741,913.

    We should PAY for conserving energy while the fat cats over there RAKE. Seven million PLUS!
    Without the seven mil, he'd still be living quite well.

    What the heck is wrong with us, putting up with this crap?

  10. Lemme get this right, we conserve to save money, and to help out with climate change.

    NV Energy looses so much money that we have to pay more. I can remember the last couple of rate increases which they claimed were necessary because they were not showing a profit.

    I am kind of reminded of the Banks a while back, they got their hand slapped by the government for stealing from us.

    Then they had to raise all their other Fee's to make up for what they could no longer steal/

  11. no supprise here, the more you save the more it cost. Let's build some more solar farms and put the ac at 83. save money, no.