State OKs reduction in NV Energy rates

A reduction in electricity rates approved Tuesday by the Public Utilities Commission of Nevada might not make a huge difference in consumers’ bills this summer compared to last year.

According to NV Energy, the reduction will see bills decrease 5-16 percent for July, August and September, depending on a customer’s location and type of electric service they receive.

In Northern Nevada, the average single-family residential customer using 1,100 kilowatt hours of energy – the average for July 2022 – will save approximately $20 per month over the months of July, August and September. Overall electric bills may be higher this summer than last summer because of higher fuel costs previously experienced.

That will help offset an a 10-percent increase in bills experienced by consumers over the last year.

“We are glad to be able to step in and deliver a solution for our customers, who have been impacted by the higher purchased power and natural gas prices,” said NV Energy President and CEO Doug Cannon. “We know that energy bills are at their peak during the summer due to high electricity usage, and this proposal helps reduce the costs when customers need it the most.”

NV Energy files quarterly rate adjustments based on the actual fuel and purchased power costs paid by the company in the previous year. Those costs are a pass-through cost, meaning that customers pay the same price that NV Energy pays, and the company does not mark up costs on purchased power and natural gas purchases.

In 2022, the price NV Energy paid for natural gas consistently increased by more than 70 percent, peaking in January 2023. Provided natural gas prices remain stable, the cost increase customers are currently experiencing is expected to decrease over the next year as the high 2022 natural gas costs roll off and NV Energy experiences lower natural gas prices in the future.