Nevada Public Utilities Commission authorizes two new gas generators in NV Energy Integrated Resource Plan decision

Missed opportunities to save money and reduce pollution

FOR IMMEDIATE RELEASE
December 20, 2024

Contacts:
Justin Brant, 541-760-0042, jbrant@swenergy.org (Energy Efficiency Programs)
Travis Madsen, 720-937-2609, tmadsen@swenergy.org (Electric Vehicles)

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[CARSON CITY, NV] – Today, the Public Utilities Commission of Nevada (Commission) reached a final decision on NV Energy’s 2024 Integrated Resource Plan (IRP), authorizing two new gas-fired generators at the Valmy power plant. The decision and the plan comes as many Nevadans have been struggling with high utility bills, driven in part by over-reliance on methane gas for power generation. At the same time, transportation remains a significant expense for Nevada residents and businesses, tied to Nevada’s relatively high prices for gasoline and diesel. 

“While the final IRP approved by the Commission today will ensure a stable supply of electricity and support Nevada’s economy in the coming years, it misses key opportunities to help customers save money and reduce pollution,” said Justin Brant, Southwest Energy Efficiency Project (SWEEP) Utility Program Director. “Investing in new gas-fired power exposes customers to price volatility and creates pollution. NV Energy and the Commission could have reduced the need for new gas by taking greater advantage of energy efficiency, which also helps Nevadans save money on their electricity bills.”

“Nevadans are adopting electric vehicles at unprecedented speed, increasingly realizing that they can save a lot of money fueling up on electricity rather than gasoline,” said Travis Madsen, SWEEP Transportation Program Director. “Under this plan, NV Energy will continue to offer attractive rates for at-home EV charging, but I’m concerned that lower income Nevadans – especially those who live in multifamily buildings – will be left behind.”

Details on the decision: Energy efficiency

The Commission declined efforts by SWEEP and NV Energy to expand the Company’s existing energy efficiency funding and savings goals in this proceeding. Instead, the Commission maintained the status quo with regards to energy efficiency spending and savings for the next three years. At a time when the state is seeing rapid growth in energy usage and utility bills, this status quo funding will fail to keep pace with growth, leading to fewer opportunities for customers to take advantage of energy savings opportunities. SWEEP estimates that by approving a smaller energy efficiency budget, NV Energy’s customers will miss out on over $100 million in benefits in the next three years.

Details on the decision: Transportation electrification

Transportation is the second-largest expense for a typical Nevada family, behind only housing. It is also the largest source of climate-warming emissions in the state, and a major source of health-threatening air pollution. Electric vehicles (EVs) are an important tool that Nevadans can use to save money while also reducing pollution. EVs will also have very large economic benefits, particularly in Nevada, which is a growing hub for the U.S. domestic battery and vehicle supply chain. 

EVs are taking off in Nevada. At the end of 2023, there were 58,000 EVs registered in the state. In the third quarter of 2023, EVs accounted for more than 16% of new vehicle sales – for both passenger vehicles and commercial trucks – ranking Nevada fifth nationally. In the IRP, NV Energy forecast that around 180,000 EVs will be on the road in the state by 2027, with EVs reaching close to 30% market share. 

The potential for EVs to save drivers money is a major driver of that growth. NV Energy’s optional residential EV charging rate is comparable to paying ~55 cents per gallon of gasoline, which is cheaper than gas has ever been. 

The Commission’s decision and the IRP will help maximize the benefits of transportation electrification in the following ways:

• The Commission approved a comprehensive advisory services program, where NV Energy will help customers navigate key decisions on the journey to deploying an EV.
• NV Energy will be launching a series of new “managed charging” programs, which will help EV customers understand that they can pay less for electricity and help the overall electricity grid operate more cost effectively by charging at optimal times.
• Transit agencies will continue to be able to apply for grants to help install EV chargers at their facilities.

However, the plan misses some key opportunities:

• NV Energy will discontinue some existing EV programs as of January 1, 2025. NV Energy will no longer offer financial support for installing public chargers along highways or in public locations within cities; and there will be no further rebates for school districts or public agencies to support installing chargers for new electric buses or fleet vehicles. (Federal tax credits and federal funding will continue to support charger installation under the Bipartisan Infrastructure Law and the Inflation Reduction Act.)
• The Commission’s decision cut proposed support for EV charging at multifamily buildings, which will exclude many people from accessing optimal cost savings and could slow down progress. While new multifamily buildings in places (like Clark County) that have EV-ready building codes will be able to charge overnight at home on an attractive electricity rate, residents of older buildings are likely to depend on public charging, which is much more expensive. In particular, this will make it harder for low-income and underserved customers to fully access the benefits of transportation electrification.

During deliberations today, the Commission voted to approve the initial draft order with only a few small wording changes. The Commission will post the final order on the PUCN website under Docket 24-05041 when complete.

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The Southwest Energy Efficiency Project (SWEEP) is a public interest organization promoting greater energy efficiency, clean transportation, and beneficial electrification in Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming. swenergy.org