Electric rate that would spark ‘green’ jobs will receive study

An interim legislative committee on Tuesday asked the state Public Utilities Commission to investigate a new form of electric rate that supporters say would boost "green" energy jobs.

But the rate would also increase consumers' power costs, advocates acknowledged.

At issue are feed-in tariffs, or power rates that assure generators of renewable energy that they'll be paid a fair price based on production costs, and they'll receive that price in contracts that run as long as 25 years.

Bob Tregilus, co-chair of the Electric Auto Association of Northern Nevada, testified that guaranteed rates would bolster development of renewable energy because such power sources require "huge amounts" of startup capital. Developers would feel more confident about such investments if they knew they'd recoup building costs.

Feed-in tariffs are popular in Europe: Some countries, such as Germany, have used the rates to finance green-power development for nearly 20 years.

In Germany, feed-in tariffs have added nearly 5 percent to consumers' power costs. But Tregilus credited the tariffs with creating 280,000 green jobs in the country of 82 million. He also said the tariff cost in Nevada could be half of what it is in Germany because of the Silver State's abundant renewable resources, which include nonstop sunshine and a multitude of geothermal hot spots.

Committee member and state Sen. Mike Schneider, D-Las Vegas, added that Germany has installed more than 22,000 megawatts of wind power and more than 3,800 megawatts of solar power since it began charging feed-in tariffs in 1991.

"Those are impressive results," Schneider said.

But feed-in tariffs haven't fared so well in the United States. Only a few states and cities have implemented the rates, and many of those efforts have failed to yield optimum results.

Sara Birmingham, director of Western policy for the Solar Alliance, said many U.S. jurisdictions have had trouble finding the right tariff balance. Set rates too low, and developers won't step up. Make them too high, and a jurisdiction can generate more interest than it can handle, and surplus profits for developers could result.

"Neither are outcomes we want to see," Birmingham said.

Jurisdictions attempting to use feed-in tariffs also run into trouble setting long-term prices that will remain "fair" for years to come, Birmingham said.

"The United States hasn't quite gotten it right yet, but this is an open invitation to you, and hopefully, Nevada will get it right," Birmingham said.

The legislative committee asked the Public Utilities Commission to look into the feasibility of feed-in tariffs in Nevada. Commissioner Rebecca Wagner said the agency would put an item on its Nov. 19 agenda to launch the process of considering the rates.

Contact reporter Jennifer Robison at jrobison@review journal.com or 702-380-4512.