Nevada

Restructuring Overview  |  Public Benefits  |  Restructuring Resources  |  Consumer Protection

Legislation Passed
Electric Y (and repealed) Gas N

1997, AB 366; Initial Restructuring Bill

1999, SB 438; Refined restructuring

2001, AB 369; Repealed restructuring and prohibited the sale of generation assets by utilities prior to July 2003.

2001, AB 661; Allowed large customers to choose their electric suppliers and created a Fund for Energy Assistance                        and Conservation 

Electric
Overview

• 2001: Assembly Bill 369 was passed and signed into law in April to repeal electric deregulation in Nevada. It also called for the state to maintain regulation of the power industry and placed a moratorium on the sale of power plants in the state.
• April 2002: AB 661, was signed into law, creating a universal service fund for low-income energy assistance and began operating a new low-income rate assistance program as of July 2002. It also allows electricity consumers using more than one MW of power a year may opt to choose their electric suppliers if the Nevada Public Utility Commission finds their exit is in the best interest of the public.
• July 2002: The PUC  issued an order allowing four casinos and one mall to purchase electricity from a Houston-based competitor, Reliant Resources Inc., beginning November 1. The order also sets the amount that the five large companies must pay ($4.2 million collectively) to leave Nevada Power's system.
• August 2002: The Commission heard testimony on from one more casino operator that filed a request to purchase power from Reliant.  Other large customers are expected to apply for permission to leave the Nevada Power system now that the PUC has provided guidelines on how to calculate exit fees. The exit fees will compensate Nevada Power and its remaining customers for revenue lost over the next three years.
• November 2002: Las Vegas voters passed an initiative asking the state legislature to take action to enable their local utility to be a locally controlled, not-for-profit public utility. 
• April 2003: State regulators authorized MGM Grand, Park Place Entertainment and seven other large commercial customers to buy electricity from competitors of Nevada Power Co. The nine major customers account for slightly more than 9 percent of Nevada Power's total sales. The state Attorney General’s office opposes the move because it allows Nevada Power to seek rate increases to make up for the lost revenue.

Choice Status

• In 2001, Nevada repealed its 1997 deregulation legislation, and there are no competitive suppliers serving residential consumers.

Natural Gas
Overview

• In July 1997, the state legislature approved a restructuring plan for the electric utility industry that also set the stage for possible restructuring of the gas industry. In August 1997, the Public Utilities Commission of Nevada opened Docket No. 97-8002 to examine changes in the natural gas industry and to formulate pertinent regulations. Since then, regulations have been written covering affiliate transactions and licensing. No significant actions regarding gas restructuring are expected until issues associated with electric utility deregulation have been resolved.

Choice Status

• The state has no unbundled services for residential customers but is considering action.

Suppliers
http://puc.state.nv.us/GAS/naturalgasproviders.htm

Public Benefits

While Nevada has put the brakes on restructuring, it has gone ahead and created a universal service fund for low-income energy programs. In August 2001, the Public Utilities Commission of Nevada began collecting the universal energy charge from customers of gas and electric utilities to pay for the programs. The charge is based on consumption, and the revenue, expected to be about $10 million per year, is placed into a fund, 75% of which is distributed to the state’s LIHEAP for rate assistance; the remainder goes to the state weatherization grantee. (Click here for details on the state’s low-income energy and general residential energy programs.)

Aggregation - buying coops

• An alternative seller may combine two or more customers or any group of customers to provide aggregation service. The Public Utilities Commission may not limit the ability of 1) an alternative seller to combine customers to provide aggregation service, or 2) customers to form groups to obtain aggregation service from alternative sellers. Alternative sellers must obtain a license from the PUC.

State Restructuring Resources

Utility Regulatory Commission
Public Utilities Commission
775-687-6000
http://puc.state.nv.us/

Division of Consumer Complaint Resolution
Las Vegas, Nevada
702-486-2600
http://puc.state.nv.us/general/div.htm

Consumer advocate
Office of Attorney General
Bureau of Consumer Protection
775-687-6300
rccooper@ag.state.nv.us

Consumer Protection
Many consumer protections in Nevada are addressed by The Bill of Rights, which:

• Eliminates deposits unless customer has poor credit history.
• Limits size of deposit and allows for installment payments.
• Requires utilities to offer budget-billing program.
• Requires payment plans for needy customers.
• Offers special protection for the elderly and handicapped.
• Postpones service termination when health is at risk.
• Provides third party notice prior to service termination.
• Allows customers to apply for service via phone or mail.
• If customers believe a utility is denying them a right covered by the bill of rights, contact the Commission's Consumer Complaint Resolution Division at: Carson City / Reno 775-687-6000; Las Vegas 702-486-2600; Rural Nevada 800-992-0900 ext. 687-6000

• An alternative seller must first obtain a license from the PUC. In establishing licensing regulations, the PUC shall consider safety and reliability of service, financial and operational fitness, and billing practices and customer service.

• The Commission is required to establish procedures that prevent customers from being switched to another provider without a reliable confirmation of the customer's intent and approval of the specific details of the change. The Commission is also currently establishing procedures to reduce the chances for "slamming" and will impose penalties for such behavior.

Dispute resolution

• If customers believe a utility is denying them a right covered by the bill of rights, contact the Commission's Consumer Complaint Resolution Division at: Carson City / Reno 775-687-6000; Las Vegas 702-486-2600; Rural Nevada 800-992-0900 ext. 687-6000.

• If evidence is presented to the Commission that anticompetitive or discriminatory conduct, including, but not limited to, the unlawful exercise of market power, is denying customers the benefits of effective competition in a market for electric services, the Commission shall:

1. Consult with, and transmit such evidence to, the attorney general; and
2. If appropriate, inform, and transmit such evidence to, the United States Department of Justice and any appropriate federal agency.