Advanced Energy Perspectives

In Nevada, the need to significantly expand power generation, transmission capacity, and regional resource sharing is urgent as the state’s energy grid struggles to keep up with rapid economic and industrial growth. Northern Nevada’s energy grid, for example, could quadruple in size as the data-storage industry continues to grow and expand in the Reno-Sparks area and beyond. Strengthening and expanding transmission lines will be especially critical to ensure that the growing demand for energy can be met as new advanced energy resources come online.

In response to this need, nearly four years ago, Senate Bill 448 created a Regional Transmission Coordination Task Force to help shape Nevada’s energy future. The Task Force is responsible for studying issues and policies related to transmission development and regional electricity markets, both of which are key solutions to deal with load growth.  

The 2024 NV Energy Integrated Resource Plan (IRP) proceeding is coming to a close, with a decision expected from the Public Utilities Commission of Nevada (PUCN) by December 20, 2024.

In Nevada, an IRP proceeding is conducted every three years with the goal of ensuring that NV Energy has the resources it needs to reliably and affordably serve Nevada’s electric customers and meet state policy goals. However, NV Energy’s proposed IRP, similar to those preceding it, exemplifies how the IRP process encourages investment in new gas resources, despite the availability of cheaper clean energy resources, such as Nevada’s abundant solar, geothermal, and distributed energy resources increasingly found on Nevadans’ rooftops and driveways. 

Imagine having an abundance of cheap, advanced energy resources at your fingertips, but instead proposing to build another natural gas plant. This is what Nevada utility NV Energy is proposing in its 2024 Integrated Resource Plan (IRP). 

What is a fixed charge? Similar to fixed costs you see on your cell phone or internet bill, a fixed charge, also referred to as a “basic service charge,” is a monthly fee that utility customers are required to pay no matter how much energy they actually use. Typically, utility bills are based on actual electricity and gas usage, perhaps with a modest fixed charge, but recently utilities have been proposing very large fixed charges on top of their already-approved charges and per-usage rates.  

Five amendments to a three-year plan is a lot, but that’s what Nevada energy utility NV Energy has proposed to its 2021 Integrated Resource Plan. An IRP is the process through which the Public Utilities Commission of Nevada (PUCN) ensures the utility has the resources it needs to reliably and affordably serve Nevada electric customers. NV Energy’s 5th amendment to its current IRP would allow the utility to get major projects approved under a shortened, simplified process that doesn’t get the scrutiny an IRP should otherwise have.