Nevada Supreme Court blocks referendum on rooftop solar rates

By Daniel Rothberg

Thursday, Aug. 4, 2016 | 12:42 p.m.

A Nevada Supreme Court ruling today blocks a SolarCity-backed referendum intended to roll back rooftop solar energy rates from appearing on the November ballot.

The proposed measure, which would have effectively restored more favorable rates for rooftop solar customers, was challenged by a political group backed by NV Energy, part of one front in a fight over new rates approved in December.

In a unanimous ruling, justices said a short description explaining the measure to voters was not valid. An order says the “description is not only inaccurate and misleading, but also argumentative.”

A lower court also found the ballot measure invalid because it was filed as a referendum when it should have been a ballot initiative, which could require legislative action.

The ruling is a blow to SolarCity, which spent at least $2 million pushing the referendum, and a victory for NV Energy, which spent more than $1 million fighting it.

NV Energy says the higher rates for solar customers are necessary to shield the majority of its ratepayers from increased bills.

“I’m sure this issue is not over yet, but we agree with the Supreme Court,” said Danny Thompson, a spokesman for the NV Energy-backed group and executive state treasurer of the Nevada State AFL-CIO.

SolarCity, which halted operations here after the new rates went into effect, vowed to keep fighting to restore prior rates for its customers. Erin McCann, a spokeswoman for its Bring Back Solar campaign, said the group plans to work with legislators now.

“While we’re disappointed that the Court ruled in such a way that the people of Nevada will not be able to vote on this issue, it clarifies the role Nevada’s leadership must play in representing the majority of Nevadans who want to bring solar back to Nevada,” she said.

The new rates, approved by the Public Utilities Commission in December and being implemented over the next 12 years, increase bills by tripling a fixed fee and slashing incentives for rooftop solar customers under a program known as net metering.

The ballot measure would have effectively undone those changes by amending the commission’s legislative authority. The rates have been controversial and are likely to emerge as an issue in the next legislative session.