NV Energy rates to increase 3.5 percent Jan. 1
Southern Nevada residents will see a 3.5 percent increase in NV Energy rates effective Sunday , the utility announced Friday.
That will add $4.84 per month to the monthly bill for the average single-family residential customer using 1,145 kilowatt hours a month, utility spokeswoman Jennifer Schuricht said.
That’s still $1 less than the average in September, when electric bills decreased by about $6 a month, she said. The new average monthly bill of $144.55 compares with $145.94 in September.
The increase, well within a cap already approved by the Nevada Public Utilities Commission, is offset by decreases in other rate components. In October, rates related to NV Energy’s natural gas and purchased power expenses fell significantly.
The new rate calculation follows last week’s PUC approval of an annual revenue increase of $158.6 million for NV Energy, which was substantially less than the $249 million requested.
At the time, PUC Commissioner Rebecca Wagner estimated the revenue figure would mean an average rate increase of around 7 percent for commercial and residential customers. But the average for both customer classes will be 2.7 percent, NV Energy said.
The utility is required to file for a general rate case at least once every three years to recover the costs of operation and maintenance, transmission and distribution facilities, depreciation and for shareholder return.
The latest filing included the cost of improvements at the Harry Allen Generating Station and the Clark Generating Station and energy efficiency programs.
“It’s never easy for us to raise our rates,” Schuricht said. “This increase helps cover the cost of the Harry Allen Generating Station, which will ultimately benefit customers over the long run by reducing our reliance on purchased power.”
In its order, the commission established an overall rate of return for the company of 8.09 percent and a return on equity of 10 percent.
The commission on Dec. 21 disallowed big chunks of NV Energy’s request for higher revenue to cover power plant construction costs, operating expenses and higher investor returns.
The commission nixed $46 million for a new computer system, demanded a
4 percent cut in salary costs and trimmed the company’s allowed, maximum return on equity from 10.5 percent to 10 percent.
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.