Nevada passed two bills that aim to expand access to rooftop solar for low- and fixed-income renters, and lower energy costs for all ratepayers while providing accountability for utilities.
AB 458 allows solar panel installations on low-income housing, allowing renters to participate in the savings. AB 458 requires the owner of solar-powered affordable housing systems to ensure the net metering credits are equitably allocated among the tenant units. For example, they must ensure that at least 80% of the total allocation is reserved for tenant units.
AB 458 received only support during testimony.
Wil Gehl, senior manager of the Solar Energy Industries Association’s (SEIA) Intermountain West Region, said the legislation will help ensure the benefits of affordable, reliable and local solar power equitably reach Nevadans.
AB 452 requires the Public Utilities Commission (PUC) to open one or more investigatory dockets into how the utilities are passing purchased fuel and power onto ratepayers, among other things. AB 452 also gives the PUC more time to scrutinize its requests to hike utility rates and its capital spending.
If the PUC determines a cost-sharing mechanism is warranted, it will adopt and implement the policy, shifting some financial responsibility back onto the utility.
The legislation passed days after its CEO resigned and one week after the PUC launched a formal investigation into NV Energy, Nevada’s largest public utility, for allegedly overcharging more than 60,000 customers by more than $17 million. NV Energy also recently disclosed that it overcharged about 20,000 previously unidentified “multi-family accounts” for an undisclosed amount. According to the filing, the overcharges amounted to about 80,000 customers going back 23 years.
With AB 452, NV Energy will also be required to provide full refunds with interest if it overcharges customers in the future. The closes the loophole that enabled NV Energy to refund its customers only six months of the overcharges that went back decades.
“NV Energy called this a ‘solution in search of a problem,’” said Pastor Marlon Anderson, clean energy organizer for Faith Organizing Alliance. “That’s an insult.”
According to the Nevada Conservation League, 68% of Nevadans prefer local clean energy to importing methane gas. Nearly 90% of those surveyed said they wanted to see legislation this session that limited how utilities spend customer money and to increase transparency.
“Utilities should be required to share in the fuel cost increases instead of passing them all to the
ratepayers, who have little to no choice in their utility provider,” said representatives from the Mormon Women for Ethical Government (MWEG) in testimony. “This will incentivize the utilities to invest more in stable, locally produced energy sources such as solar and geothermal, which are not subject to the same geopolitical threats and shortgages [sic] as natural gas.”
“It will keep utility bills lower for ratepayers, especially since renewable energy costs, which have dropped significantly over the last decade, are now generally cheaper than traditional fossil fuels,” MWEG said. “Because this trend is expected to continue, utilities in Nevada should be incentivized to rely more heavily on these less expensive renewables instead of importing more expensive natural gas.”
Nevada consumes six times more energy than the state produces, according to the U.S. Energy Information Administration. Nearly 31% of the Sunshine State’s electricity is from solar, according to SEIA. Nevada’s residential market is ranked 8th for its solar capacity and 6th per capita, with 17.1% of homes having solar.
AB 458 passed the Senate 13 to 7 after passing the Assembly 36 to 6. Gov. Lombardo has until June 13 if he plans to veto the bills or they will automatically become law.
“Energy freedom shouldn’t depend on your zip code or whether you rent or own your home,” said Julia Hubbard, Nevada program director of Solar United Neighbors in a statement. “This bill opens the door for more Nevadans to access clean, affordable energy and keep control over their utility bills.”
Read about other solar-related bills state lawmakers are debating this legislative session here.
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