Here’s how energy customers can get their money’s worth

Monday, Dec. 21, 2015 | 2 a.m.

There’s a lot at stake in a decision expected Dec. 22 from the Nevada Public Utilities Commission.

Many people might assume we are referring to the much-anticipated decision about the rate NV Energy should be allowed to charge homeowners with rooftop solar systems. And that’s a good question: Solar panel users provide much (if not most) of their own electricity but still need NV Energy’s electricity — until large batteries become affordable — and distribution system.

There is anxiety among solar advocates that the PUC will be so sympathetic to the energy monopoly, it will force solar users to pay more than is justified. For a multitude of good reasons, the PUC needs to encourage the use of alternative energy sources, and NV Energy needs to adjust its business model to allow the growth of the upstart solar industry.

But there’s another pending financial decision by the PUC that will affect far more than rooftop solar proponents. In fact, it will directly affect everyone.

The question: How much money should NV Energy spend to push energy-efficiency programs?

Using LED light bulbs and “smart” thermostats can trigger energy savings. Your kneejerk reaction to the strategy might be: Let NV Energy spend as much money as it can and wants to, to make our homes and businesses more energy efficient. Good for the company!

But in fact, the cost of NV Energy’s energy-efficiency programs is picked up by customers on their monthly utility bills. And for that reason, NV Energy’s spending plan must be approved by the PUC.

So now, it’s personal. How much are you willing to pay into a kitty to promote energy-efficient homes and workplaces? NV Energy spent about $42 million on green programs in Southern Nevada in 2014, and about $47 million in 2015. The company now is asking that the program be expanded to a cost of $56 million in 2016, $61 million in 2017 and $65 million in 2018.

The average residential customer pays $2 to $3 a month toward the efficiency kitty, NV Energy officials said, and households can save as much as 15 percent on an energy bill by using the program.

The Southwest Energy Efficiency Project, a nonprofit advocacy organization funded in part by the U.S. Department of Energy, argues that NV Energy should be allowed to collect and spend even more money toward energy-efficiency initiatives.

“If you look at the impact over just 10 or 12 years, this helps us avoid investing in new power plants and having to upgrade transmission and distribution systems,” Executive Director Howard Geller said. “This program saves more money than it costs.”

But officials with the Nevada Bureau of Consumer Protection disagree. The agency has asked the PUC to keep NV Energy’s energy-efficiency kitty at 2015 amounts. Agency officials say the cost of the program can be a hardship for some customers and that energy cost savings are projected and may not come to fruition.

Where does the money go? The utility offers customers, for free, “smart” house thermostats that allow for more efficient heating-and-cooling schedules, saving up to $100 a year. Swimming pool owners can buy energy-efficient pool pumps and receive $250 rebates. Rebates also are offered for particular air conditioner tune-ups. And those significantly discounted LED light bulbs at your favorite big-box store? NV Energy subsidizes the cost of those.

Well, actually, we subsidized the cost of the rebates and other energy-efficiency programs through our power bills. The payoff went to people who bought LED lights, purchased new pool pumps, recycled their old refrigerators, had their air conditioners fine-tuned and the like. Those who sat on their hands got nothing for their money.

It’s a smart program if everyone taps its benefits. NV Energy needs to better promote the program — and not take credit for it — so everyone better understands that if they don’t participate in one way or another, they are not getting back from NV Energy what’s theirs to take.