EDITORIAL: Nevadans weren’t promised confusing power bills

On Tuesday, the Public Utilities Commission of Nevada gave NV Energy permission to implement a new pricing scheme. Currently, residential and small business customers pay a flat rate for how much electricity they use. Starting in April, they will face a new charge. Each day, NV Energy will identify the 15-minute time slot in which a customer uses the most electricity. It will then charge that customer based on his or her peak usage, which will be called the demand charge.

The company will continue to bill customers for their overall power usage. Their per-kilowatt-hour charge will decline because of the introduction of the demand charge.

To recap: The power company is going to penalize customers for using too much power. This would be like McDonald’s charging $1.99 for a hamburger, but $3.99 if you order four or more.

In a competitive market, this wouldn’t be a problem. Some customers may prefer surge pricing and be willing to adjust their power usage in pursuit of lower overall costs. But Nevada homeowners don’t have options. NV Energy has a monopoly. The utility offers a program for residential customers to “shift your usage, lower your bill.” If consumer demand for this program were strong, NV Energy wouldn’t need to impose it on everyone.

While NV Energy deserves the customer fury that’s almost certainly coming its way, there’s another element to consider. From the passage of Nevada’s first Renewable Portfolio Standard in 1997, the state has long prioritized so-called green energy. In 2013, the Legislature passed a bill to shut down coal power plants. Lawmakers and voters both approved a 50 percent RPS by 2030. NV Energy is building its $4-plus billion Greenlink project. Nevada’s net metering program has artificially boosted demand for rooftop solar.

Nevada has gone all in on solar and renewables, and this is the result. The irony of this new charge is that it’s a way for NV Energy to increase its revenue from customers with rooftop solar. Homeowners with rooftop solar “sell” energy back to the grid when it’s least needed. But they still want to use energy from the grid when the sun goes down. Some of those customers currently pay $0 a month for power usage, although they still pay a service charge. Now, they’ll also be charged for using power when the sun isn’t shining.

There are plenty of reasons to be upset at NV Energy, but consumers should direct their ire at the fundamental problem. For years, politicians and vested interests have moved Nevada’s energy policy goals away from cheap and reliable energy. Green energy advocates promised better and cheaper power. They haven’t delivered.

The confusing power bill you’ll receive next year is more proof of that.