NV Energy to drop electric rates for Northern Nevada customers by 1.8 percent
Submitted by editor on Thu, 12/30/2010 - 3:55pm
Good news for Carson City NV Energy customers. The Public Utilities Commission of Nevada has approved an overall decrease in electric rates for NV Energy’s Northern Nevada electric customers effective Saturday, Jan. 1.
For the typical residential customer using 745 kilowatt hours of electricity per month, it means a decrease of approximately 1.8 percent or $1.57 per month from $87.97 to $86.40.
There is an increase, however, for natural gas customers in the Reno and Sparks area, according to NV Energy. For the typical Reno and Sparks residential customer using 54 therms of natural gas per month, it means an increase of approximately 1.6 percent or $0.88 per month from $56.72 to $57.60.
Depending upon customer class, the change may result in an increase or a decrease in rates.
The rate changes are a result of the company’s mandatory electric filing made every three years that is called a General Rate Case, according to a news release.
An offsetting decrease was also included in the rate change as part of a mandatory quarterly filing the company makes to adjust rates to more closely match fuel and energy costs. These costs are passed on to customers on a dollar-for-dollar basis, with no profit to the company.
Through the end of 2010, NV Energy’s northern Nevada customers experienced eight consecutive quarterly decreases in electric rates and six consecutive quarterly decreases in natural gas rates. That is in addition to two annual decreases for both electric and natural gas customers. In just two years, NV Energy’s electric prices have fallen 19 percent and natural gas prices have decreased by 20 percent, the news release states.
The general rate change granted by the PUCN allows the company to recover costs associated with investments in new transmission and distribution lines, substation and equipment improvements, labor and a return to the company's shareholders.
The PUCN established an overall rate of return for the company of 7.86 percent for electric and 5.15 percent for natural gas, and a return on equity of 10.1 percent and 10 percent respectively. The overall revenue increase to the company is $13.1 million for electric and $2.7 million for natural gas.
In addition to the above rate changes, the PUCN in its order also added to an existing surcharge for electric customers in Washoe County to recover incremental costs to place certain electric transmission lines in Washoe County underground, as required by the Washoe County Board of Commissioners, according to the news release.
The surcharge will be collected over a three-year period so for the typical residential customer residing in Washoe County it amounts to approximately $1.63 per month.
The PUCN implemented a similar charge for electric customers in Carson City that will cost the typical residential customer in that county approximately $0.60 per month.
