High Fixed Charges Undermine Energy Conservation, Increase Costs for Nevadans
RENO, NV — Today, the Nevada Conservation League, Chispa Nevada, Faith In Action Nevada, and For Our Future Nevada joined dozens of NV Energy customers in opposing the company’s proposed rate increase in Northern Nevada. The public consumer session held by the Public Utilities Commission (PUCN) in the Washoe County Commission Chambers followed two previous consumer sessions in Carson City. These sessions showed widespread concern about NV Energy’s plan to nearly triple the basic service charge (BSC) for single-family residential customers from $16.50 to $45.30 per month and double the BSC for multi-family households from $8.00 to $18.80.
Starting each month with a $45.30 charge before using any electricity reduces the incentive for energy conservation and increases the minimum costs of living. The rate hike would burden the most vulnerable Nevadans, particularly families on fixed or lower incomes who consume less electricity. It also punishes residents who bought rooftop solar systems, throwing the economics of their investments out the window. Many solar customers save hundreds annually, but these savings would be slashed and the payback period extended.
This comes after NV Energy recently increased the BSC for Southern Nevada customers from $12.50 to $18.50, a rise of 48 percent. If approved, this rate request threatens to escalate the company’s return on equity from 9.5% to 10.4% and its rate of return from 7.14% to 7.95%, lining investor pockets on the backs of hard-working Nevadans and almost eliminating the relief customers should see from declining methane (natural) gas prices – costs the utility already passes entirely onto ratepayers.
“NV Energy’s rate hike proposal undermines Nevada’s clean energy policies and goals,” said Trystin St. Denis, Northern Nevada Community Organizer for the Nevada Conservation League. “When families face higher fixed charges, the financial benefits of reducing energy use or investing in rooftop solar nearly vanish, disincentivizing conservation practices that benefit our environment and economy and hit disadvantaged communities the hardest. As the number one state for solar potential, NV Energy should incentivize solar energy, not penalize it.”
“For many in our community, every dollar counts,” said Astrid Martinez, Community Organizer for Chispa Nevada. “NV Energy tripling fixed charges would hit Latine families and other vulnerable groups the hardest, making it difficult for our families to manage our budgets effectively. This would be the highest fixed charge in the country. We cannot allow this to happen without a fight. We call on the PUCN to protect consumers and reject corporate greed.”
“NV Energy’s proposed rate hike is not just an economic issue; it is a moral one,” said Chasity Martinez, Community Organizer for Faith In Action Nevada. “Our faith teaches us to care for the most vulnerable among us, and this rate increase is unjust. It promotes waste over stewardship and prioritizes corporate greed over human dignity. NV Energy has failed to take responsibility for overburdening customers with increasing bills while their profits remain protected, and now they want even more. Enough is enough! We stand in solidarity with all Nevadans in opposing this harmful proposal, and we call on our elected leaders to protect our community from these unnecessary and excessive charges.”
“NV Energy’s proposal is more than just a rate increase; it’s a direct attack on hard-working families,” said Madisen McGrath, Senior Organizer at For Our Future Nevada. “With the highest fixed fee in the country, this move threatens to derail our progress towards a clean and pollution-free energy future and penalizes households that make efforts to reduce their energy usage and save money. For years, NV Energy has collected money from ratepayers to institute energy efficiency programs. Not to mention, President Biden’s Clean Energy Plan is helping people weatherize and upgrade their homes to be more energy efficient. And now, they want to punish us for using these programs. Further adding insult to injury, NV Energy has boasted record profits quarter after quarter. This rate hike is nothing more than a blatant cash grab at the expense of Nevada’s working families.”
In case you missed the Carson City consumer session on June 4, 2024, attendee quotes are available here.
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The Nevada Conservation League is the independent voice of Nevada’s conservation community. We work to maintain and enhance the natural character of Nevada and the quality of life for Nevadans through effective advocacy, the election of pro-conservation candidates, and building collaboration.