Rates for Northern Nevada NV Energy customers will drop about 10% for the average homeowner if a new proposal submitted to the Public Utilities Commission gets approved.
The utility has requested the rate change go into effect in Oct 1.
“Customers will be paying less than what they paid at the end of 2023,” NV Energy spokesperson Meghin Delaney told the RGJ.
“So your October, November and December 2024 bills should be lower than your 2023 bills, which is great for customers because we know it’s not been fun to be paying higher energy bills.”
In addition to a 10% overall decrease in residential bills, Delaney said, NV Energy is asking for similar changes for small and large business customers.
NV Energy is also asking the PUC to change how its bills are structured.
Some line items that are currently variable in cost would be moved over to be included in the fixed “basic service charge” seen on bills.
Why NV Energy bills are expected to drop
Prices for natural gas – which NV Energy uses to generate electricity in Nevada – rose sharply in 2022. Now the cost has plummeted.
“Adjusted for inflation, natural-gas futures recently hit their cheapest prices since trading began on the New York Mercantile Exchange in 1990,” the Wall Street Journal reported Sunday. https://www.wsj.com/finance/commodities-futures/natural-gas-hasnt-been-this-cheap-in-decades-95959da7
Because rate changes must go through a lengthy approval process in Nevada, it takes months for market prices to be felt on bills.
“Lower natural gas prices are helping drive that 10% decrease by the end of the year because we buy the gas up front and then that gets paid back in your bill on a rolling basis,” Delaney said.
“So all those super high gas prices that we saw happened after NV Energy bought the gas in 2022 and customers saw it on their bills in 2023. Those (higher prices) will be rolling off bills in 2024.”
The consolidation of some variable costs into the line item for “basic service charge,” she said, will help with efficiencies that will also contribute to the 10% drop in bills.
According to an NV Energy news release sent out Wednesday, “This change not only more accurately reflects the fixed cost of service for a customer but will also help average customers avoid large seasonal bill fluctuations that make budgeting for energy costs challenging.”
A bill’s fixed costs will rise because of this change.
“The basic service charge will go up on your bill but because a lot of the other rates are dropping, that’s actually going to help drive your bills down by the end of the year,” Delaney said.
What’s next
The PUC – part of Nevada’s state government – will hold public hearings that will give customers and consumer groups a chance to weigh in whether they agree with the proposed changes.
A PUC decision on NV Energy’s plan is expected around September.
A public hearing schedule on the proposal will be available at puc.nv.gov when it’s confirmed.
Mark Robison is the state politics reporter for the Reno Gazette Journal, with occasional forays into other topics. Email comments to mrobison@rgj.com or comment on Mark’s Greater Reno Facebook page.
Read More: NV Energy seeks 10% drop in residential electric bills starting Oct. 1