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Google Seeks Nevada Declaratory Order On How It Can Take Competitive Supply For New Facility Without Utility Planning For Load, Incurring Exit Fee

May 8, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Google has submitted a petition with the Nevada PUC for a declaratory order seeking an explanation of how a new electric customer to Nevada who is seeking to obtain service pursuant to Nevada Revised Statutes (NRS) 704B can obtain such service without being subject to impact (exit) fees, with the exception of certain mandatory nonbypassable surcharges.

Further, Google requests that the declaratory order explain how such a customer should apply for and receive bundled electric service on an interim basis only for a period of time during construction of its facility so that the new electric customer qualifies as an eligible customer under NRS 704B. Lastly, Google requests that the declaratory order establish the process for how such new customers should notify an electric utility of their intent to take service from a provider of new electric resources such that the electric utility does not plan for or incur costs to serve the customer's load that would create impact fees.

Google's filing of the petition for declaratory order had been previously reported, but the specific relief sought by Google was not known at such time

Google noted that it has a greenfield site in Nevada for which it is evaluating potential uses, including use as a data center, though it said in the petition it does not have any immediate plans to construct a data center at the site

Google said that it would take utility supplied power for temporary construction power only, and intends to take service from a provider of new electric resources as soon as possible.

"In Petitioner's experience at its existing data center sites outside of Nevada, taking service under a direct access framework can offer significant benefits that meet the unique needs of the data center industry. Direct supply contracts often deliver access to more cost-competitive energy options than can be obtained through typical regulated utility rate offerings. These frameworks also allow competitive providers to rapidly create a greater variety of contractual options for customers. They also enable suppliers to be contractually nimble and agile, which is important to data center providers that need scale and adjust electricity service as they adapt to fast changing market trends," Google said

Google specifically requests that:

• The Commission confirm that pursuant to NRS 704B, while an end-use customer must be a bundled electric service customer to be eligible to purchase energy from a provider of new electric resources, there is no minimum duration for which the end-use customer must be a bundled customer of the electric utility. For instance, temporary bundled service for only one day is sufficient to meet the statutory requirement.

• The Commission confirm a "Customer", and thus, an "Eligible Customer", can become eligible to apply for and receive approval to purchase from a 704b provider of new electric resources simply by applying for bundled service and not necessarily having yet received service.

• The Commission confirm the minimal "1-day" of bundled service may occur at any time during the project development and any time after having applied for bundled service.

• The Commission confirm that filings and notifications can be timed and made so that NV Energy does not incur costs for planning for an eligible customer's load, and thus, no 704b impact fees result.

• The Commission confirm that, given adequate and timely notice, an electric utility should be able to provide electric service to a development project while ensuring the utility does not incur costs that result in the imposition of 704b impact fees.

• The Commission provide recommendations or guidelines for when and how it should provide notification to NV Energy so that NV Energy is adequately aware of petitioner's plans and does not incur costs to serve petitioner

Docket 17-04019

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