Nevada PUC joins three western utility commissions to address climate change

CARSON CITY — The Public Utilities Commission of Nevada has joined three other Western public utility Commissions in signing a joint action framework that addresses climate change through cooperation to reduce greenhouse gas pollution.

At its July 31 meeting, the PUCN unanimously agreed to become a signatory to the Western public utility Commissions’ Joint Action Framework on Climate Change.

The other signatories of the Joint Action Framework are the California Public Utilities Commission, the Oregon Public Utilities Commission, and the Washington Utilities and Transportation Commission.

Those three Commissions originally signed the Joint Action Framework over 10 years ago, with the goal of sharing information and best practices to reduce carbon pollution and expand the development of low-carbon technologies in the energy industry.

“The Public Utilities Commission of Nevada is excited to join the other Western Commissions in a cooperative effort to promote deployment of cost-effective, reliable and clean energy resources and infrastructure, while recognizing the unique approach of each state to addressing these difficult challenges,” PUCN Chairwoman Ann Pongracz said.

The PUCN is following the lead of Nevada Gov. Steve Sisolak and the State Legislature in taking important steps to address climate change. In March 2019, Gov. Sisolak announced that Nevada joined the U.S. Climate Alliance, a bipartisan coalition committed to reducing greenhouse gas emissions.

During the recent 2019 Legislative Session, the Legislature passed and the Governor signed Senate Bills (“SB”) 254 and 358, which both recognize the growing threat of climate change and the importance of investing in clean energy resources to reduce carbon emissions.

The Joint Action Framework contains a list of action items that include ways to ensure regional energy markets maximize benefits to taxpayers, review best practices to identify and secure cost- effective conservation, and explore increasing use of low-carbon energy capacity resources to lower customers’ costs and improve system reliability.

In 2006, west coast utility regulators signed an agreement to address climate change, a serious threat to the health, safety, and welfare of all people. Over ten years later, the Chairs of the California, Nevada, Oregon, and Washington
Commissions reaffirm this commitment to ensure that investor-owned utilities operate in a manner that protects human health and safety, the environment, and ratepayers from risks related to carbon pollution.

The California, Nevada, Oregon, and Washington Commissions provide regulatory oversight of investor-owned energy utilities, and the policies and decisions of the Commissions help determine the extent that utilities contribute to greenhouse gas pollution.

While the Commissions operate under distinct state laws and jurisdictional constraints, the flow of energy is inherently interstate, and regional cooperation is necessary and appropriate.

The Commissions are committed to addressing climate change and to implementing regional policies encouraging cooperation between the states to reduce carbon pollution. This Framework establishes a mechanism for the Commissions to share information and best practices with the mutual goal of reducing carbon pollution and expanding development of low-carbon technologies in the energy industry.

To address the real-life implications of climate change, the Commissions support cooperation to reduce greenhouse gas pollution, improve reliability, and obtain cost benefits for ratepayers.

Statement of Shared Principles
The following Shared Principles serve as a general guide for a cooperative effort to promote cost-effective, reliable, and clean energy resources and infrastructure:

— Regional cooperation to address climate change.

— Development and use of low-carbon technologies in the energy industry.

— Promotion of cost-effective conservation and demand response.

— A strong, continued commitment to renewable energy resources.

— Support for energy planning processes that recognize the ability of low-carbon resources to provide reliability and cost-effective benefits, while fostering new technology and innovation.

— Advancement of infrastructure to reduce carbon emissions in the transportation industry.

Action Items
The Commissions will work cooperatively on the following actions to implement the Shared Principles:

— Review best practices and pursue joint opportunities to identify and secure cost-effective conservation.

— Review best practices for demand response and develop joint activities to increase beneficial demand response capability.

— Examine opportunities to further support and implement renewable energy development to service the states, including policies to encourage the development of cost-effective transmission that provides access to prime low-cost resource sites.

— Seek opportunities to share analyses of the benefits, costs, and reliability of variable generating resources.

— Explore the collaborative development and use of low-carbon energy capacity resources to lower customers’ costs and improve system reliability.

— Explore the costs and benefits of regional transmission markets to better utilize resources and protect ratepayers.

— Share best practices in grid modernization, including distribution planning and operations, distributed resources, and distribution and transmission interface.

— Work to ensure regional energy markets maximize benefits to ratepayers.