NV Energy filed its required General Rate Case (Docket No. 16-06009) on June 6 with the Public Utilities Commission of Nevada (PUCN) for its northern utility, Sierra Pacific Power (SPPC). The filing requests no change to the company’s core electric operations revenue requirement, which are costs associated with management of the utility and delivering electricity to customers.
“If today’s filing is approved, our customers will continue to experience the lowest overall electric rates in nearly a decade,” said NV Energy CEO Paul Caudill, adding, “My colleagues at NV Energy have embraced the challenge of competition, changes in the western energy markets, and exciting new technology. The fact that we are holding our costs steady, after a significant decrease in revenue requirement that was approved by the commission in 2013, is a testament to their commitment to our customers.”
Today’s filing also seeks a decrease in the costs needed to fund delivery of natural gas to Sierra Pacific Power’s customers. The utility serves about 46,000 customers – most of them in northern Nevada and the Lake Tahoe Basin in California.
NV Energy’s two utilities, Sierra Pacific Power and Nevada Power Company, are required by law to make General Rate Case filings every three years. SPPC’s filing in 2013 resulted in a $39 million dollar decrease in annual core operations revenue – which provided significant bill savings for customers over a three-year period. The company is requesting through today’s filing to provide price stability through 2020.
While the company seeks no increase in its core operations revenue requirement, legal mandates require NV Energy to adjust rates for most customer classes. If approved as filed, this reallocation of costs for the average northern Nevada single-family residential electric monthly bill, based on a monthly use of 739 kilowatt-hours (kWh), will result in an increase of $1.46, or 1.87 percent, from $78.10 to $79.56. Multi-family residential customers and small business customers would experience a decrease.
“Even with these changes, the residential customer bill will be around $80 – lower than it was in the summer of 2007 at $100,” said Caudill.
The PUCN will schedule a consumer session and hearings in the coming months to review NV Energy’s rate case request. If approved as filed, the new rates would take effect on January 1, 2017.