PUC chairman defends solar rate hike to state lawmakers

By Cy Ryan

Friday, Feb. 19, 2016 | 8:32 p.m.

The chairman of the Public Utilities Commission defended a rate hike for solar customers before a Nevada legislative committee on Friday.

Paul Thomsen spent more than two hours explaining the PUC's December decision to eliminate the $16 million annual subsidy given to Nevada rooftop solar customers. He said the estimated 2.3 million traditional consumers are being charged $3 a month to support the subsidy of the 17,500 solar customers.

The regulators voted Feb. 12 to phase in higher rates for rooftop solar customers over a longer period of time than previously approved — a concession to rooftop solar customers who say higher rates make it harder to recoup their investments in panels.

Regulators voted unanimously to implement the increase gradually over 12 years instead of four.

Regulators approved a the rate hike in December as a way to phase out the subsidy for solar users, who still tap into NV Energy's grid at night or when their panels don't meet their energy demand.

Senate Minority Leader Aaron Ford, D-Las Vegas, said the PUC made “the wrong decision” in not allowing the existing solar users to continue to receive the subsidy. And he said that not everyone agrees that the solar user was receiving a subsidy.

He referred to a study that said the solar customers were actually subsidizing the other users. But Thomsen said that was a flawed 2-year-old study and that the PUC relied on more recent data.

Nevada lawmakers passed a bill last spring asking the commission to set new rates for solar users once the state hit a statutory solar capacity cap. Parties upset with regulators' final decision have filed lawsuits, offered hours of biting public comment at regulatory meetings and are seeking relief at the ballot box.

Thomsen said the goal of the PUC is to make sure all customers in the same class are paying the same rates.

Senate Majority Leader Michael Roberson, R-Las Vegas, said the PUC is being criticized for a “lack of transparency.”

Thomsen countered that all of the commission's documents are online and available to consumers and that it follows the state's open-meeting law. He said he wants to allow live online access to the commission hearings.

Thomsen challenged the complaint that the PUC is killing the solar industry. He said the PUC has approved big solar companies who intend to invest $6 billion in Nevada and make available more renewable energy to the grid.

The regulator also said Friday that big casinos and other large businesses are subsidizing power rates for small users such as homeowners.

Thomsen said the commission intends to examine this subsidy and make adjustments. That could mean a gradual increase in residential electric rates.

The Associated Press contributed to this report.