NV Energy demand charge approved despite public opposition

LAS VEGAS (FOX5) — NV Energy will begin applying daily demand charges to customer bills in April despite public outcry against the billing plan during a hearing before the Public Utilities Commission of Nevada.

The demand charge is based on the 15 minutes of the day when customers use the most electricity. It varies both by customer and by day.

NV Energy says the plan is designed to get customers to spread out their power usage throughout the day to avoid peak usage. Energy advocates say the billing structure doesn’t suit most families’ lifestyles.

“I want you to think of single mothers who get home from work, they’re multitasking, they’re starting laundry, making dinner, and looking up video tutorials on how to help their children with homework,” said Hector Areola of the Nevada Environmental Justice Coalition. “Under this daily demand charge, that necessary simultaneous use of electricity will trigger a punishing fee she cannot avoid and does not understand.”

Company defends billing change

NV Energy says the demand charge will lower most customers’ power bills. The company says this billing structure more accurately reflects the cost of electricity delivery.

The utility says the change also removes cost inequities between solar users and non-solar users.

Despite impassioned pleas from dozens of people, the Public Utilities Commission of Nevada stood by its decision to allow NV Energy to move forward with the demand charge.

Customers voice concerns

The demand charge is based on daily billing for the 15 minutes of the day in which customers use the most electricity. The charge will vary by customer and by day.

NV Energy says it’s designed to get customers to spread out their appliance use instead of having everything on at once. The company says this billing structure better reflects the cost of power delivery and insists it will save the average family money.

Customers told the commission they don’t like the charge, don’t want to pay it, and some say they’re afraid of what will happen once it takes effect.

“Today, my disability limits the type of work I do and the hours I am able to work,” said Robert Garcia of Make the Road Nevada. “I want to provide more for my family, but my body doesn’t always let me. That is why these rate increases and new fees hit so deeply. When NV Energy raises costs, people like me don’t have the option to pick up extra hours or a second job. We are simply forced to absorb higher bills that we cannot afford.”

NV Energy customer Leticia Smith said she lives on a fixed income with limited resources.

“I live with a fixed income and very limited and every dollar in my home has a purpose,” Smith said. “I don’t have space in my budget. I don’t have savings and I don’t have a way to cover increases when prices rise up. Every month is a struggle to cover my basic needs.”

Smith said the new charges would be difficult for people in her situation.

“That’s why these new charges and increases the energy levels are the most important for people like me. I just can’t pay them,” she said. “Electricity is a necessity, not a luxury. It keeps my home safe. It allows me to cook, keep me warm or fresh, and take care of myself. And with a fixed income, any amount of money, that means that I have to sacrifice other needs.”

Alice Barnum, a solar advisor and NV Energy customer, questioned the company’s claims about lowering bills.

“We have been told that this charge will somehow lower bills for families,” Barnum said. “Quite honestly, I laughed when I read that because it’s simply not believable. A fee that punishes people for using power inside their homes is not a cost reduction. It is an added burden, and I think you know that. Calling it a benefit is an insult to every rate payer who already struggles with rising bills.”

Multiple speakers questioned the legality of this billing method, while some accused commissioners of corruption. The public comment did nothing to sway the commissioners’ opinion or change their decision.

NV Energy will begin using the demand charge in April.

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