NV Energy's RPS rate adjustment has been climbing steadily and now represents about 11% of total electric costs for large commercial accounts here in Vegas. The latest filing shows $0.0198/kWh for renewable portfolio compliance costs. My question is whether anyone has successfully challenged the cost allocation or project selection methodology. Some of these solar projects seem overpriced compared to market rates, and industrial customers are bearing a disproportionate share of the costs.
NV Energy's Renewable Portfolio Standard Rate - Anyone Challenge This Successfully?
Tony, RPS riders are tricky because they're mandated by state renewable energy standards, but you're right that the cost allocation and project procurement can be challenged. The key is whether NV Energy is following competitive bidding requirements and proper cost allocation methodologies. In Tennessee, TVA had to revise their green power cost allocation after industrial customers proved they were subsidizing residential renewable programs disproportionately.
Randy's point about cost allocation is spot on. We challenged National Grid's renewable energy charge here in Rhode Island on similar grounds. Large industrial customers were paying based on peak demand while getting minimal benefit from the distributed solar programs that made up 60% of the RPS costs. Got the allocation method changed to reflect actual program participation and saved our clients about 23% on their RPS charges.