Public Utility Commission of Nevada adopts consumer-friendly rate structure

In the General Rate Case, Nevada Power proposed a new voluntary TOU rate with an on-peak period between 3 to 9pm, every day from June through September. Western Resource Advocates (WRA) and the Southwest Energy Efficiency Project (SWEEP) proposed an alternative peak of 6 to 9pm during that same time period. WRA and SWEEP designed this alternative to incentivize energy shifting and achieve cost and reliability benefits, but also to make the rate far more attractive for customers.

“This is a huge win for residential customers of Nevada Power Company,” said Emily Walsh, WRA’s Clean Energy Policy Advisor. “Time of Use rates have the potential to help individual customers save money, increase reliability benefits on the system as a whole, and make it easier to incorporate clean energy resources onto the grid. By approving a shorter on-peak period for the new residential rate, more customers are likely to sign up for it, which will significantly expand these benefits.”

NV Energy, parent company of Nevada Power, has offered various TOU rates for decades, but they have never had more than 1% of eligible customers participate. In fact, at the moment, only 0.63% of eligible customers are enrolled in the currently available TOU rate. This low participation indicates that customers are not attracted to sign up for this rate, likely because it is too difficult to shift energy use during a six-hour timeframe at the end of the workday.

“Utility regulators have taken important steps to fix the ways that NV Power customers are charged for electricity. These changes are long overdue,” said Justin Brant, Director of SWEEP’s Utility Program. “Thanks to the much improved and more flexible rate options, customers will be better able to manage the cost of living in Nevada while providing much-needed services to the grid.”

There are many other successful TOU rates around the West focused on giving customers more control through shorter on-peak periods. This is clearly a more attractive rate structure in other areas of the country, and the Commission agreed with WRA and SWEEP. In its draft order, the Commission says that it “believes this type of rate structure sends the appropriate price signals to TOU customers during peak hours and therefore will encourage more residential customers in the state to take service under TOU rate schedules.”

This decision will take effect on January 1, 2024.