By Emerson Drewes / Las Vegas Review-Journal
A Clark County district court judge has denied a petition from Attorney General Aaron Ford’s Bureau of Consumer Protection seeking to block NV Energy’s upcoming demand charge, clearing the way for the new billing structure to take effect January 1.
Clark County District Court Judge Mary Kay Holthus denied the petition for judicial review on Tuesday, saying the decision to implement the demand charge was supported by substantial evidence after extensive proceedings. Review Journal
Attorney General Aaron Ford responded that “the court got it wrong” and announced his office will appeal to the Nevada Supreme Court. “In the middle of a cost-of-living crisis, it is outrageous for big utility companies to drop yet another expense on Nevadans’ shoulders in the form of the unlawful demand charge,” Ford said in a statement. Review Journal
The ruling comes after months of legal and regulatory battles over the new billing structure. The demand charge creates a two-pronged approach to monthly billing: combining how many kilowatts a customer used during their highest 15-minute period of usage with the typical per-kilowatt-hour charges used each month. Review Journal
The case presented before Judge Holthus was substantial. NV Energy and the PUC presented over 40,000 pages of evidence, 70 witnesses, 20 parties, and a seven-month investigation to justify the implementation of the demand charge. Review Journal
At the center of the dispute is a cost-shift argument. Between 2018 and 2024, the total cost shift borne by non-rooftop-solar customers in Southern Nevada was $424 million. NV Energy and the PUC argued it was unfair for 90 percent of customers to subsidize the grid costs generated by 10 percent of customers — a point Holthus agreed with. “Throwing out there that 90 percent of the people pay for 10 percent of the people — I just keep coming back to that,” she said. Review Journal
NV Energy has maintained that most non-solar customers will see a reduction in their rates if their usage habits do not change. Solar and net energy metering customers will, on average, see about a $12 increase in their monthly bills. Review Journal
The BCP had argued that the demand charge constituted an unlawful time-of-use rate in violation of a Nevada law prohibiting mandatory time-of-use rates for all customers, and that the commission acted outside its statutory authority. NV Energy and PUC attorneys countered that demand charges have been used for large commercial customers for years and that the charge does not fluctuate throughout the day. Review Journal
The BCP’s petition for judicial review was a final effort to overturn the charge after its October petition directly to the PUC was denied by the commission. Ford’s office now takes the fight to the Nevada Supreme Court, though the demand charge remains on schedule for a January 1 implementation date. Review Journal