Economic Development
NV Energy Files for Rate Decreases -- Again
NV Energy has filed with state utility regulators to lower rates for electricity and natural gas in northern Nevada. The company plans to reduce overall electric rates by 10.2 percent and to reduce natural gas rates by 4.6 percent, effective October 1, 2010.
Large commercial customers could see a 10 to 11 percent decrease in electric rates, depending on energy consumption, plus an approximate 5 percent decrease in natural gas rates. (The utility serves natural gas customers only in the Reno-Sparks area.)
The decreases requested on March 1 are in addition to four consecutive quarterly rate decreases for NV Energy customers during 2009 that cut residential electric rates by approximately $12 per month. By the end of 2009, gas rates for residential customers were $6.60 less per month than at the start of the year. If the rate reductions are approved by the Public Utilities Commission of Nevada, rates will be rolled back to 2005 levels.
Rates are declining because wholesale energy prices for fuel and purchased power have dropped, and because the company’s newest gas-fired, combined cycle power plant east of Reno is one-third more efficient than more conventional gas-fired generating plants. Costs for fuel and purchased power are passed through to customers dollar-for-dollar with no profit to the company.
More decreases are in the works for April 1, 2010, as part of NV Energy’s quarterly Base Tariff Energy Rate filing. An electric rate decrease of approximately 1 percent and a 5 percent decrease in natural gas rates are effective April 1.
