This opinion was published by the Reno Gazette Journal.
Re: “PUC denies NV Energy bid to triple service charge in Northern Nevada,” Sept. 19:
More than 250 NV Energy customers shared their concerns about NV Energy’s request to raise the base rate for single-family homes to $45 per month. Approving the increase in base rate requested by NV Energy would have had significant negative impacts on low -income customers, harmed rooftop solar customers and businesses and increased our greenhouse gas emissions. But that didn’t happen; the PUCN listened to consumers and denied the requests.
Why is this important? It’s because NV Energy is the monopoly electricity provider for Northern Nevada; it is a for-profit company that does not have the best interests of ratepayers or society as its driving force. Its priority is the value of its stock and the proceeds its shareholders earn. This is not a criticism; it’s reality. It is the role of government to regulate business to meet the goals of society.
The PUCN has the power to do this for NV Energy. It should be clear from the outcry of community concern over this last rate case that the Cost of Service Regulation payment model is not working. NV Energy needs to be regulated more effectively since its actions no longer align with the needs of customers or society. It’s now up to the PUCN find a way to change the drivers that direct NV Energy’s performance.
There are plenty of examples around the country of states changing the behavior of their energy companies to match up with state goals. They are using an assortment of tools, like performance-based regulations, non-wire alternatives, multi-year rate cases, smart grids, decoupling of cost of service from income, performance improvement plans, etc. Perhaps it’s time to form a task force involving all interested parties, an inclusive group. Something needs to change, and soon.
We all owe the PUCN enormous gratitude for hearing our concerns, but this is not a battle we want to have to fight every year. Let’s all encourage the PUCN to move forward as quickly as possible to realign NV Energy’s goals with those of the consumers and society. Cheaper, safer electricity, more options for consumers to save money on their bills, more rapid movement away from dirty fossil fuels. Making these changes now will have an enormous impact on the health and economy of our state.
Sandra Koch, MD is a Carson City resident.
