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Nevada Bill Would Require Utilities To Propose Cap On Amount Of Competitive Supply Load In IRP

Would Only Allow Exits To Competitive Supply If PUC Finds That Exits Are, "In The Public Interest"

Would Restrict Shopping Decision To Annual Window


May 17, 2019

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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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A new bill, S.B. 547, has been filed in Nevada which would revise the current provisions governing the ability of large customers to apply at the PUC to take competitive electric supply

Most notably, the bill would provide that the PUC shall require the utilities to include in their integrated resource plans, "a proposal for annual limits on the total amount of energy and capacity that eligible customers may purchase from providers of new electric resources through transactions approved by the Commission pursuant to NRS 704B.310."

As part of such plan, the utilities must include, "[p]roposals to ensure the stability of rates and the availability and reliability of electric service." In determining whether to adopt any cap on competitive load, the PUC would be required to consider whether the caps: (a) Further the public interest, including, without limitation, whether the proposed annual limits promote safe, economic, efficient and reliable electric service to all customers of electric service, and (b) Encourage the development and use of renewable energy resources.

The bill would also restrict when applications for competitive supply could be filed, direction that the customer shall file an application with the Commission between January 2 and February 1 of any year and not later than 280 days before the date on which the eligible customer intends to begin purchasing energy, capacity or ancillary services from the provider

Furthermore, the bill would only authorize the PUC to approve an exit application for a customer to take competitive supply, if the PUC determines that granting an application would be, "in the public interest" -- as opposed to the current requirement that the PUC may grant the application if the grant of the application is not "contrary" to the public interest

The bill would revise the factors the PUC shall consider in an exit application to include whether the utility will "experience" increased costs -- as opposed to the current standard that only considers whether the utility will be "burdened by" increased costs. Additionally, the PUC must now consider whether remaining customers would forgo benefits of a reduction of costs for electric service as a result of the application.

The bill would also establish that competitive suppliers must be licensed by the PUC, and subject suppliers to various assessments currently paid by utilities

The bill would allow the PUC to establish rules for returning to bundled service. The Commission may establish a limit on the number of times an eligible customer may be approved to purchase energy, capacity or ancillary services from a provider of new electric resources as the Commission deems necessary and appropriate to prevent harm to the customers of an electric utility, the bill provides

The bill was introduced by Democratic Sen. Chris Brooks

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