Advanced Energy United and Interwest Energy Alliance call on Nevada to establish regular, predictable competitive solicitations for energy resources to catch up with other western peers and ensure least-cost, most reliable energy for ratepayers

CARSON CITY, NV, JUNE 21, 2023 – Late last week, Governor Joe Lombardo signed Assembly Bill 524, a bill making changes to the state’s integrated resource planning (“IRP”) process for electricity. The IRP is a chance for NV Energy, the state’s only investor-owned electric utility, to determine what generation and other resources it needs over the long-term to serve Nevadans with reliable and affordable electricity.

“Nevada is well positioned geographically to be a leader in the West in developing clean, affordable solar, wind, geothermal, and storage resources,” said Sam Johnston, Policy Manager at Interwest. “What Nevada needs most is fair, regular, predictable competitive solicitations for energy resources so that developers can offer the state their best and most innovative projects. The more project options that are on the table, the easier it is for the Commission to find the mix that guarantees most reliable service at lowest cost to Nevadans.”

Due to a last-minute amendment to the bill, AB 524 would allow NV Energy to propose one portfolio of resources, among other portfolios, within which a “significant share” are utility-owned, without the necessary guardrails of competitive procurement that identify the lowest-cost projects and ownership models. To date, the Public Utilities Commission of Nevada has not approved many renewable resources to be utility-owned because the utility can often contract with independent power producers for the same energy at lower cost to Nevadan ratepayers.

"Enabling NV Energy to preference utility-owned resources without the guardrails afforded by truly competitive solicitations ultimately undermines the state’s goal for affordable, clean energy,” said Sarah Steinberg, Policy Director at Advanced Energy United. “It may put private investment, and the state’s regional clean energy leadership, at risk.”

United and Interwest intend to make recommendations related to competitive solicitations in the Commission’s new investigatory docket (No. 23-05013), opened to examine regulatory improvements to NV Energy’s integrated resource planning process.

Read the clean energy industry’s joint AB 524 veto letter here.

Click here to learn more about Advanced Energy United's work in Nevada.