Nevada Voters Approve Electric Choice Initiative in First Step To Opening State To Electric Choice; Measure Must Still Win in 2018

Nevada voters approved, with "Yes" winning with 72%, Question 3, which had asked whether Article 1 of the Nevada Constitution shall be amended to require the Legislature to provide by law for the establishment of an open, competitive retail electric energy market that prohibits the granting of monopolies and exclusive franchises for the generation of electricity

Under Nevada law, a ballot initiative amending the state's constitution must be approved in two consecutive elections to take effect, so the electric choice initiative must still win in 2018 to take effect.

The initiative would amend the state's constitution to provide that, "Effective upon the dates set forth in subsection 3 [noted below], every person, business, association of persons or businesses, state agency, political subdivision of the State of Nevada, or any other entity in Nevada has the right to choose the provider of its electric utility service, including but not limited to, selecting providers from a competitive retail electric market, or by producing electricity for themselves or in association with others, and shall not be forced to purchase energy from one provider. Nothing herein shall be construed as limiting such persons' or entities' rights to sell, trade or otherwise dispose of electricity."

Furthermore, the initiative would amend the constitution to provide that, "Not later than July 1, 2023, the Legislature shall provide by law for provisions consistent with this Act to establish an open, competitive retail electric energy market, to ensure that protections are established that entitle customers to safe, reliable, and competitively priced electricity, including, but not limited to, provisions that reduce costs to customers, protect against service disconnections and unfair practices, and prohibit the grant of monopolies and exclusive franchises for the generation of electricity"

See the text of the initiative here

Under Nevada's current law, only very large customers (1 MW or above) may take alternative supply, and customers must receive approval from the PUC to do so. The PUC has ruled that such customers must pay exit fees to keep other customers whole; exit fees for several Las Vegas casinos exiting utility supply were set in the range of $15 million to $87 million