Advanced Energy United applauds Senator Rochelle Nguyen, the Nevada legislature, and Governor Lombardo for coming together to modernize the state’s gas utility regulations to prepare for a rapidly changing energy system.
CARSON CITY, NV, JUNE 16, 2023 – Last week, Governor Joe Lombardo signed Senate Bill 281, creating a new long-term resource planning process for the state’s gas distribution utilities. The bill is designed to bring gas utilities under a similar statutory framework as electric utilities, giving the Public Utilities Commission of Nevada and stakeholders new oversight, transparency, and input into the infrastructure investments of Nevada’s energy future.
“Several converging trends are reshaping our energy needs and preference, including new and improved building technologies, the availability of federal rebates and tax incentives for energy efficiency and high-performing appliances, and volatile gas prices putting upward pressure on bills,” said Sarah Steinberg, Policy Director at Advanced Energy United, which advocated for passage of the bill. “We need new regulatory processes to future-proof our infrastructure and technology investments. That’s the only way that we can avoid overbuilding – and overcharging Nevada ratepayers – for a system destined for change.”
In the past, the Commission has only had the opportunity to scrutinize investments after the fact in large, complex filings called General Rate Cases, wherein the utility determines the rates that customers will pay. Now, Southwest Gas and NV Energy will come in every three years with forward-looking plans that forecast changes in gas demand and identify the least-cost mix of resources, including energy efficiency and conservation measures, to meet that demand.
“There are so many new technologies on the scene, including smart meters and thermostats that can enable gas conservation during peak demand periods, air- and ground-source heat pumps, networked thermal energy systems, and more. The least-cost and least-risk solution to a gas system need might no longer be the same traditional infrastructure investment as it once was. This new process creates a space to have those conversations, especially as customers are feeling pinched by rate increases,” continued Steinberg.
The Commission must now undergo a rulemaking to get more specific as to what gas utilities must consider when they put forth those plans, and how those plans will be evaluated. Advanced Energy United plans to engage to help craft a robust framework to compare alternative investments that set the state on a path to 100% clean energy.
Steinberg concluded, “We’re thrilled to see Nevada evolve its utility regulations to account for 21st century energy system challenges and opportunities, and especially pleased at the bipartisan collaboration between and support from gas utilities, labor unions, homebuilders and developers, environmental organizations, chambers of commerce, and the clean energy industry. We hope other states take note and follow suit.”
Click here to learn more about Advanced Energy United's work in Nevada.