PUC meetings this week a step toward ending solar wars

By Kyle Roerink

Monday, Nov. 16, 2015 | 2 a.m.

This week marks the next round of debate between NV Energy and rooftop solar companies.

Over four days of meetings, the Public Utility Commission's three regulators will begin to decide how Nevadans will pay for rooftop solar in the future, ending what has been a nearly yearlong battle.

Currently, there is unlimited participation in a program called net metering, which allows consumers to be paid for energy they provide to NV Energy’s grid with their rooftop solar panels. A legislative mandate recently lifted a participation cap but asked the PUC to implement a new cost structure in exchange for the unlimited access. The PUC has until Jan. 1 to issue regulations.

Here’s what you need to know:

WHAT’S THE DEBATE?

NV Energy says the state’s net metering framework unfairly shifts costs to nonsolar consumers. The company has proposed a plan that would reduce the amount it pays to consumers for the rooftop solar energy and add new fees and a new charge for rooftop solar customers.

For the rooftop solar industry, the NV Energy proposal would be bad for business. The proposal, the rooftop industry says, likely will trim the margins and upend their business models.

WHAT ARE OTHERS SAYING?

The state’s Bureau of Consumer Protection, which represents ratepayers in PUC hearings, said NV Energy’s proposal had “serious flaws.”

“The BCP is concerned that all residential customers — solar or not — will be overcharged,” said William Marcus, a consultant hired by the consumer advocate to research the proposal.

In a rebuttal to Marcus, NV Energy consultant Ahmad Faruqui said the new charge was accepted in other parts of the country.

“Demand charges provide accurate price signals,” he said in testimony filed with the PUC.

WHAT’S A DEMAND CHARGE?

The demand charge proposed by NV Energy imposes a fee based on a consumer’s use averaged over a 15-minute period each month. The charge is based on how much energy consumers need at a given time and will be priced at $14.30 per kilowatt.

WHO WILL BE IN ATTENDANCE?

NV Energy’s lawyers and staff will be in attendance along with their counterparts from the solar industry. Other groups are planning to attend, as well, including climate activists, faith groups and union employees.

CORRECTION: An earlier version of this story said a proposal by NV Energy would charge consumers based on consumption of kilowatt hours. The proposal charges based on how much energy they need at a given time. | (November 16, 2015)