Judge: Existing solar customers not properly notified of rate changes

By Daniel Rothberg

Published Wednesday, Sept. 14, 2016 | 8:53 a.m.

Updated Wednesday, Sept. 14, 2016 | 10:28 a.m.

A judge has ruled Nevada utility regulators followed “unlawful procedure” in approving rate changes for most NV Energy customers who had already installed rooftop solar panels.

The ruling puts additional pressure on the Public Utilities Commission of Nevada as it meets Friday to consider a deal to shield those customers from the rate changes for 20 years.

Before the new rates went into effect Jan. 1, the commission made a controversial decision to apply them to all rooftop solar customers, including those who had installed solar panels years earlier.

The judge’s ruling on Monday says existing customers did not receive proper notice. District Court Judge James E. Wilson Jr. of Carson City remanded the matter to the PUC.

The new rates, phased in over 12 years, increase bills for solar customers by tripling a fixed fee and slashing the value of credits earned for sending excess energy to the grid.

Vote Solar, a nonprofit advocacy group, filed a lawsuit challenging the PUC’s actions.

While the ruling is a win for existing solar customers, it does not invalidate the new rate structure. The judge noted that solar advocates failed to prove the PUC violated its ratemaking authority.

Sara Gersen, a lawyer for Vote Solar, said the group is exploring its options in the case. It could appeal the judge’s ruling.

“While we’re celebrating the win for existing customers, that celebration is tempered by other aspects of the opinion,” she said.

In a statement, the PUC said it was pleased the court affirmed its order on “all substantive issues,” including the basis for its decision to protect nonsolar customers from unreasonable cost shifts.

The PUC will vote Friday on a proposal to let customers with solar before the rate change to keep the prior, more favorable rates for 20 years. NV Energy, rooftop solar company SolarCity, the state’s consumer advocate and the PUC’s independent staff, which balances the interests of NV Energy’s shareholders and ratepayers, crafted the proposal.