Proposal for no increase in electricity rates going to vote

CARSON CITY — A vote is scheduled Thursday by the Nevada Public Utilities Commission on an agreement that would hold electric bills steady for the average Southern Nevada residential customer of NV Energy beginning Jan. 1.

If approved, the basic monthly service charge for residential customers would increase by $2.75 a month to $12.75 from the current $10 for Nevada Power customers beginning next year. But there would also be an offsetting reduction in the per kilowatt hour charge so average residential customers will see no change in their bill.

It would be the first time in decades that Southern Nevada electricity consumers would not see a hike in the cost of electricity as a result of a general rate request filed by the utility. General rate cases are brought before the state utilities board every three years.

The proposed rates are the result of an agreement reached by NV Energy, the Nevada Consumer Protection Bureau and other parties involved in the general rate case.

Commissioner David Noble, in a draft order filed with the agency, said the stipulated agreement maintains rate stability for all of the utility’s Southern Nevada customers.

The utility “has taken significant steps that began in 2008 and continue today to control costs, resulting in the ability to maintain rate stability,” he said in the draft order. “The revised stipulation results in just and reasonable rates for (Nevada Power’s) customers and a fair return on investments for (Nevada Power’s) shareholders.”

Two businesses, Kroger Co. and Wal-Mart Stores, have objected to elements of the rate proposal.

The initial rate filing made May 2 by NV Energy proposed a 0.9 percent overall increase across all rate classes. The effect of the proposal was estimated to be about 1.85 percent, or $2.82 a month, for an average residential customer in Southern Nevada.

In July, the utility submitted a new proposal that would have seen a 1.64 percent overall hike in rates, with a typical residential customer bill of $152.19, based on average use of 1,141 kilowatt hours a month, increase by 2.58 percent, or $3.93.

The monthly service charge would have risen to $15.65 under this second proposal, instead of the $12.75 a month under the agreement reached in August.

The Nevada Consumer Protection Bureau objected to the more than 50 percent increase originally proposed by the utility for the monthly service charge, saying it would mean higher costs for people with low incomes who use less electricity.

Contact Capital Bureau reporter Sean Whaley at swhaley@reviewjournal.com or 775-687-3900. Follow @seanw801 on Twitter.