NV Energy files with PUC regarding opt out for smart meters

The slog toward a smart-meter opt-out program has taken another step toward a conclusion, with both NV Energy and the state Bureau of Consumer Protection agreeing on a settlement.

Local power company NV Energy filed documents Monday with the Public Utilities Commission of Nevada, saying it has agreed to let ratepayers opt out of its smart-meter initiative with analog meters rather than digital devices. But the utility still wants to charge ratepayers to opt out. It's asking for a one-time fee starting at $53.46, and a monthly charge of $8.14.

Monday's filing shows that the Bureau of Consumer Protection is on board with NV Energy's proposal if the Public Utilities Commission agrees to it.

NV Energy's filing is the latest in a circuitous process that's taken more than a year to play out. The PUC began looking into opt-outs in October 2011, after about 40 ratepayers protested the devices at consumer sessions.

Following a series of January workshops, the commission gave the nod in February to opting out. NV Energy proposed four alternative meters and pricing structures in May, including installing noncommunicating digital meters that would require manual reading, using digital meters that NV Energy could read remotely from the street and letting ratepayers keep their analog meters.

On Nov. 27, the commission nixed remote-read meters because they still emit electromagnetic waves, and it scotched the analog idea after NV Energy experts testified that the older devices were becoming less accurate and more costly to maintain as they grew more obsolete.

Instead, the board signed off on a noncommunicating digital meter, as well as a one-time opt-out fee of $98.75 and a monthly fee of about $9. The charges would help NV Energy recoup the cost of keeping meter-reading staff to manually collect use data from non-smart meters, the commission said.

But after three hours of ratepayer testimony demanding that NV Energy leave analog meters in place for opt-outs, Commissioner Rebecca Wagner dissented on the final decision, saying that the board didn't give enough consideration to the analog idea.

So the Bureau of Consumer Protection filed a petition to reconsider, asking the commission to let ratepayers keep their analog meters and not pay a fee.

Monday's compromise offer met in the middle, replacing digital meters with analog devices, and an offer of lower fees than NV Energy initially proposed.

The utility said it would allow analog meters, but that it would still need to charge a fee to install and monitor the devices. That's because the company will use new, sealed analog meters. The company said it needs new analogs partly because it's already installed most of its smart meters - fewer than 1 percent of local ratepayers still have their original analog meter - and also because regulations require any newly installed meter to be sealed and tested to assure accuracy and prevent theft.

The filing also notes that opt-out charges could vary depending on how quickly ratepayers want their new analog meter. Consumers willing to wait up to 90 days for a newly installed meter during a routine reading would pay a one-time fee of $53.46. Ratepayers who ask for an immediate replacement would shell out $85.23 to compensate NV Energy for a "dedicated site visit." The monthly charge would be $8.14 a month for both groups. In the filing, both the Bureau of Consumer Protection and NV Energy agree the rates are just, reasonable and appropriate.

The PUC has until early February to make a decision in the case.

The opt-out program would be a trial plan that would last four years.

About 9,000 ratepayers statewide, out of 1.45 million metered customers, are on NV Energy's smart-meter postponement list.

Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512. Follow @J_Robison 1 on Twitter.