Las Vegas Sun

May 4, 2015

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NV Energy wants $9.8 million surcharge to make up for conservation

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.

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  1. why dont they have a reserve for when they dont sell enough power. How come they didnt sell enough power?

  2. 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.

  3. 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

  4. Wow. The nerve of these guys! Seems they think they are *entitled* to our money! They must be Obama supporters :)

  5. Stick it to NV Energy but good, go Solar!

  6. "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.

  7. Every legislator who voted for that law should be voted out of office!

    We also need a PUC that answers to the rate payers.

  8. By the way, if Horsford voted for that law, do you really want him in Congress?

  9. "Heads, I win; tails, you lose." That appears to be the case here.

  10. How about the names of those who voted for that legislation?

  11. 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,

  12. 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.