Nevadans pay too much for their energy

Sandra Koch and Timothy McFarren
| Reno Gazette Journal

Nevada's energy monopoly laid out its plans for the next three years and beyond earlier this year. These require significant improvements.

Climate change is increasingly impacting the well-being and wallets of Nevadans. The Public Utility Commission of Nevada (PUCN) has a responsibility to require “safe, economical, efficient, prudent and reliable operation of our energy monopoly,” and the current 2024 Integrated Rate Plan does not meet this standard.

It is expanding renewable energy and transmission infrastructure, which is commendable. Unfortunately, this also comes with additional dependence on volatile, environmentally harmful methane gas. In addition, plans to use liquid hydrogen as fuel are added without knowing the costs. After a decade of no new methane plants in Nevada, NV Energy is seeking approval to build $1.1 billion in polluting infrastructure that we, the taxpayers, will pay for. We have to pay them almost $100 million a year that we have collected from taxpayers for decades. This dependence on expensive gas electricity must end.

NV Energy is a company; It has a responsibility to make money for its shareholders. The PUCN has a duty to balance the interests of the monopoly with those of Nevada residents. It is clear that the current wage structure does not incentivize the company to provide Nevadans with the “safe, economical, efficient, prudent and reliable” energy that would best serve us. We ratepayers need our state energy monopoly to give us tools to reduce our energy bills. We are tired of our dependence on the unstable natural gas prices that drove our energy bills so high last winter. We don't want to have to pay $100 million a year in interest on every expensive new gas-fired power plant they build when there are other, cheaper ways to meet our energy needs.

Senate Bill 300, passed in 2019, gave the PUCN the authority to make these changes. It is up to the PUCN to find a way to promote the well-being of Nevadans by changing the way NV Energy makes money. This is not an easy task, but it will have a long-term positive impact on our country. PUCN and NV Energy can and must find a path forward.

There are many options to consider. Creating a task force that includes all stakeholders could be the key to finding the right path for Nevada. Many states have achieved lower energy costs and faster reductions in fossil fuel consumption by using some of the following tools:

Smart grids or battery storage can handle peak energy demand instead of peak-load power plants. And we make them here in Nevada.

Effective time-of-use tariffs would give consumers the tools they need to lower their electricity bills while reducing peak energy demand. This would avoid the need for new gas power plants. NV Energy's current time-of-use plan is so ineffective that less than 1% of Nevada residents have ever used it.

Setting up more electric charging stations would also reduce energy costs. Charging electric vehicles is a moneymaker for energy providers. Electric vehicles are most often charged during off-peak times, when there is excess energy on the grid that would otherwise be wasted. This is particularly important in our state because we do not have enough charging stations to power the electric vehicles currently in Nevada and clearly cannot meet the coming demand.

Promoting solar panels on roofs could also reduce our energy costs. Currently, only 3.5% of residential homes have solar power, a shockingly low number considering Nevada has more sunshine than any other state. The great thing about rooftop solar is that ratepayers don't have to pay $100 million a year (that's what the new peaking system will cost us) in interest on new infrastructure because most of the infrastructure is already in place. Increasing ratepayer access to solar energy will lower the cost of electricity and reduce our dependence on imported, polluting fossil fuels.

Please join us in sending this message to the PUCN – it is time to change the way NV Energy operates. The easiest way to comment is to write down your opinion and mail it or bring it to PUCN at 1150 E William St, Carson City, NV 89701. Be sure to include file number 24-05041. Send your message as soon as possible – the comment period ends.

Sandra Koch, MD and Timothy McFarren, MD are with Nevada Clinicians for Climate Action.

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