Moody’s: New net metering rate credit positive for NV Energy

CARSON CITY — The credit rating firm Moody's on Monday said that the new net metering tariff approved by the Nevada Public Utilities Commission for rooftop solar customers is a credit positive for NV Energy.

This is because the revised rate design addresses cost-shifting among its customers as a result of technological change while ensuring the sufficiency and predictability of the utility's revenues, Moody's said in its new Credit Outlook.

Moody's declaration of "credit positive" or "credit negative" does not connote a rating or outlook change. It is indicative of the impact of a distinct event or development as one of many credit factors affecting the issuer.

Moody's said the new met metering tariff design addresses the cost-shift issue by lowering the rate at which net metering customers are credited for the excess power sold to the grid and by increasing the fixed charge component of their bill.

NV Energy operates as Nevada Power in Southern Nevada.

Available in 43 states, net metering has been used for 30 years as an incentive to promote clean energy by allowing customers who install rooftop solar to reduce their electric bills, Moody's said. Under an NEM tariff, solar customers offset the cost of the power they buy from the utility with the price of excess power they sell to the grid.

The rapid growth of rooftop solar in recent years has caused numerous utilities to call for NEM reform to ensure that NEM customers are paying their fair share of the costs of running a utility and not shifting that burden unduly to non-rooftop solar customers, Moody's said.

The new rooftop solar rate was approved Dec. 22 and took effect Jan. 1. The PUC on Wednesday will decide whether to stay the new rate while it reviews petitions seeking reconsideration of the decision.

Contact Sean Whaley at swhaley@reviewjournal.com or 775-687-3900. Find him on Twitter: @seanw801