Energy Choice Initiative in Nevada

The Nevada Public Utilities Commission issued a notice that it has opened a proceeding to investigate the state’s statutorily mandated Energy Choice Initiative and the possible restructuring of Nevada’s energy industry. The commission explained that the docket was being initiated in response to a request from the Governor’s Committee on Energy Choice (GCEC). The GCEC had asked the commission to begin an inquiry to study the following issues:

1. A prospective timeline for implementation of the Initiative;
2. Any requirements for amendment or repeal of any current Nevada laws, policies, or existing energy programs that may be necessary to create an open and competitive electricity market in Nevada;
3. Options reasonably available for designing and establishing a wholesale electric service market in Nevada, including, but not limited to, (a) reliance on existing bilateral markets; (b) establishment of contractual relationships and possible governance structures with multistate independent system operators; and/or (c) participation in regional transmission organizations; and
4. Different approaches to designing and implementing a competitive retail electric service market, including, but not limited to, (i) the relative pros and cons of each method; (ii) best practices and structures thereto for Nevada; and  (iii) options for a service provider of last resort.

Nevada voters had approved a ballot initiative last November which provides for the Nevada Constitution to be amended if Nevadans approve the Initiative again in the 2018 general election. Such amendment to the state constitution would require language to be added indicating that it is the state’s policy that “electricity markets be open and competitive so that all electricity customers are afforded meaningful choice among different providers, and that economic and regulatory burdens be minimized in order to promote competition and choices in the electric energy market.”

The movement was prompted by several large companies, including tech companies and casinos, seeking to secure their own electric supply and leave the system of their incumbent electric utility, NV Energy, Nevada’s largest regulated electric company. While the commission did allow the customers to depart from the utility’s service, certain exit fees were imposed on them, which proved quite controversial at the time. Nevada also has been embroiled in a contentious debate about the rates that should be paid to self-generating customers with rooftop solar power. (Docket No. 17-10001)