NV Energy Proposes Controversial Billing Changes for Southern Nevada Customers
NV Energy is seeking approval from state regulators to implement a new billing formula for its Southern Nevada customers aimed at promoting energy efficiency. The utility’s proposed demand rate charge would bill residential and commercial customers based on their maximum electricity usage during a specific period, rather than their total usage over a day. Janet Wells, NV Energy’s regulatory vice president, asserts this change provides customers with more control over their energy consumption.
However, accountability groups raise concerns that the new structure could be confusing and costly for consumers. Sheila Hallstrom from Advanced Energy United emphasizes the complexity, stating that if experts find it challenging to explain, general consumers will likely struggle even more. The utility also plans to increase its basic service charge from $18.50 to $24 if the demand charge is not approved, alongside recovering over $215 million in infrastructure costs, potentially increasing bills by about 9%.
While demand charges might lower bills for customers who adjust their consumption patterns, they could impose higher costs on others, particularly those with solar panels. Hallstrom suggests that simpler alternatives like time-of-use rates may be more effective in addressing peak demand.
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