Money kept to aid low-paid power users

State officials decided Tuesday to retain $500,000 in a budget for helping low-income customers of the electric utility, citing the economic slump.

The Public Utilities Commission voted 3-0 to approve a recommendation from the attorney general's Bureau Of Consumer Protection to move $500,000 specified to buy air conditioners for low-income power customers to a program for helping low-income customers weatherize their homes.

The money will be added back into a NV Energy low-income program, bringing the total to $2.88 million next year.

The $500,000 issue arose when the commission received evidence that the air conditioner replacement program wasn't cost-effective.

So the bureau urged the commission to move the money to a budget item for weatherizing homes, which includes sealing cracks that leak air, installing insulation and putting solar screens on windows.

However, the staff of the commission argued that the money allocated for air conditioners couldn't be moved to weatherization now.

Commissioners decided to use the $500,000 for weatherization in 2009, mentioning that weatherization is one of the few effective programs for helping low-income utility customers.

"The air conditioner program didn't meet the test that the commission has adopted for cost-effectiveness, and all the parties agreed with that," Commissioner Sam Thompson said. "It's important to keep those funds available to the low-income customers in a program that's effective."

Noting that low-income people need help during the economic slump, Thompson agreed with the bureau that the money should be moved to weatherization, Commission Chairwoman Jo Ann Kelly agreed and said it was important to help low-income customers reduce their power bills.

Commissioner Rebecca Wagner said: "I don't think this recommendation could be more timely given our (economic) environment."

Bureau Chief Eric Witkoski applauded the commission decision, saying the weatherization would help given NV Energy's request to boost residential rates by 17.5 percent next year.

The commission decision doesn't affect $500,000 in unspent funds for the low-income program in 2008.

The regulatory panel, however, may decide to use $500,000 budgeted for air conditioning in weatherization again in 2010.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.