A Senate panel voted Tuesday for a bill directing state regulators to require that long-term planning by NV Energy, Nevada's major utility, factor in future costs of carbon emissions.
SB165, now on its way to the full Senate, would direct the state Public Utilities Commission to revise its rules to ensure that NV Energy's business planning takes into consideration future carbon emission prices that could add up to a lot of money.
Sen. Maggie Carlton, D-Las Vegas, abstained as other Senate Energy, Infrastructure and Transportation Committee members voted for the bill, saying the PUC already has the authority to require such plans and the bill "is just going to say, 'Thou shall do this."'
"This gives the PUC no flexibility. They can already do this. I just have concerns about making them do it," Carlton said. "They don't get the option. And it's time and effort wasted for something we didn't need to do."
Bill proponents said legislation currently being discussed at the federal level makes it likely that companies will have to purchase credits to pay for the amount of carbon dioxide gases they emit, and that required planning for future carbon emissions would save both companies and customers money.
Bill opponents said it's difficult to predict how much carbon credits would cost, and that laws passed at the state level may conflict with future federal legislation.
During an earlier hearing on the bill, Judy Stokey of NV Energy told lawmakers that she didn't think SB165 is needed now, and John Owens of NV Energy added the company already has plans for managing carbon emissions. PUC representatives said they didn't have a position on the bill.
Steve Wiel, Nevada representative of the Southwest Energy Efficiency Project, has said that if a utility chooses a power source with high carbon emissions because it's cheaper, paying for the carbon emissions could become very expensive " and consumers would have to cover the cost.