Cost Associated With

Nevada Assembly Bill 405

May 24, 2017
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NV Energys Commitment to Renewable Energy

NV Energy is committed to renewable energy development in Nevada and finding fair and
balanced solutions that include private generation as an energy source and choice in Nevada
Below are the actions that show NV Energys commitment to renewable energy development in
Nevada
NV Energy currently has 479 megawatts of solar generation in development in Nevada
NV Energy will pay between $31 and $39 per megawatt hour for energy (representing some
of the lowest cost solar renewable energy contracts in the nation)
For reference, NV Energy currently gives a credit to grandfathered residential
customers of over $110 per megawatt hour for energy from a private generation
system in southern Nevada
When these new utility scale projects come into service NV Energy will be serving Nevada
homes and businesses with more than 1,000 megawatts of Nevada produced solar energy
NV Energys commitment to renewable energy has helped reduce carbon emissions by more
than 44% since 2005
Nevada Power Company will have no company owned coal resources after 2019 and
Sierra Pacific Power Company is currently planning to have no company owned coal
resources by 2025

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Policy Considerations of Assembly Bill 405

Assembly Bill 405 creates two forms of cost that must be addressed
All customers are asked to pay above market rates for energy
Assembly Bill 405 requires NV Energy to purchase excess energy from private
solar generation systems at legislatively mandated pricing, not a price set by a
market
Customers with private solar generation are allowed to receive electric services at below
cost rates
Private generation customers would be placed in the same rate class as all other
customers, yet would receive services other customers do not. A customer with
private solar generation gets to use the electric grid in ways other customers do
not. For example, a customer with private solar generation uses the electric grid
as a place to deliver the excess energy produced by their solar panels and also
gets to rely on the electric grid to back up the private solar generation whenever
they do not have enough energy being produced
Assembly Bill 405 does not address who will be responsible for these costs or administer
the private solar generation program if the Energy Choice Initiative passes in November
of 2018

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Cost Associated With Assembly Bill 405

The total cost obligation created by existing private solar generation coupled with the
proposed private solar generation additions in Assembly Bill 405, First Reprint (95%,
90%, 85% step down) is $63.3 million annually or approximately $1.3 billion over the
minimum 20 year term specified in the bill