NV Energy filed to eliminate Schedule GS-2 (100kW-999kW customers) effective January 2024. All customers automatically moved to GS-3. The rate structure is completely different - adding a facilities charge and changing the demand tiers. This affects about 40% of my client base.
NV Energy eliminating Schedule GS-2 - forcing customers to GS-3
Saw this coming. GS-2 had been closed to new customers since 2018. The new GS-3 structure has a $450/month facilities charge plus tiered demand charges: first 100kW at $12.50, next 400kW at $15.75, over 500kW at $18.25.
The energy charges are lower though. GS-3 is $0.087/kWh vs $0.094 on GS-2. For high load factor customers, the energy savings offset some of the higher demand charges.
I ran the numbers for a warehousing client. Their monthly bill goes up about $280 due to the facilities charge and higher demand tiers. The lower energy rate only saves them $95/month.
That's pretty typical. Customers with demand between 200-400kW are getting hit hardest. The tiered demand structure is designed to collect more revenue from that segment.
Any chance customers can appeal the automatic transfer? I've got a client just over the 100kW threshold that might be better off on a different rate.
No appeals allowed. NV Energy is closing GS-2 permanently. Customers over 100kW have to be on GS-3 or higher. Some might qualify for Schedule TOU-GS if they have the right load profile.
Rate consolidations like this are becoming more common as utilities try to simplify their tariff structures. Always check if alternative rate schedules are available when customers get forced onto new rates. Sometimes Schedule TOU or interruptible rates offer better economics.