On the Reno City Council's Thursday agenda was a resolution to oppose NV Energy's proposed increase of the basic service charge from $16.50 to $45.30 — the highest such charge in the nation.
Instead, the council passed a heavily revised resolution, presented that day and not made available to the public beforehand, that removes any mention of opposition to the price hike.
In February, NV Energy submitted its proposal to the Nevada Public Utilities Commission asking to increase the basic service charge by roughly $28 a month while lowering usage charges. The utility says the changes will ultimately reduce customers' bills 10% — a claim the Sierra Club disputes — while resulting in $94.8 million in additional revenue for NV Energy.
“If you take those two changes together" — higher basic service charge and lower use charges — "the overall average bill remains the same. In fact, by year end bills are actually going to be lower if this proposal is approved,” Ryan Bellows, spokesperson for NV Energy, told the council.
The utility has requested the rate change go into effect on Oct 1. The council asked for an update in three months.
Before the meeting, the original resolution, as shown to the public, opposed NV Energy’s rate increases. The approved version on Thursday just proposes changes to it, and removed the key word “opposes” from the title in the new resolution.
“It’s just a little sleight-of-hand at the table,” Council member Jenny Brekhus said, calling the new proposal watered down.
Brekhus was upset that NV energy officials, two council members and a volunteer from the Sierra Club had discussed the resolution on a phone call beforehand.
Reno’s interim city manager Jackie Bryant said the main concerns heard from staff included significant increases for those paying low rates on solar energy, support for low-income residents who already struggle with paying their bills and the lack of incentive for people trying to conserve energy. The council wanted to emphasize these concerns in their revised resolution.
“I think the main point is that we want to support NV Energy, but we also want to support our low-income residents, we want to encourage conservation and we want to support the implementation of solar in our community,” Councilwoman Naomi Duerr said.
“It’s not against anyone. … We do care.”
What is the NV Energy proposal?
Olivia Tanager, Sierra Club’s Toiyabe chapter’s executive director, told the council people were concerned about the large increase in the basic service charge.
The basic service charge is a fixed monthly rate residents pay before they even turn a light switch.
Currently, the basic service charge is $16.50, but this proposal would increase it to $45.30. Reno is already above the national average, which is $11.66.
“The highest basic service charge known in the whole country is $37.41, meaning our fixed charge here in Reno under this proposal would be a whole $7.89 higher than any other fixed charge in the whole country," Tanager said.
Tanager also emphasized that this would be bad for solar users. She asked that the council “hold true” to their values of defending the people.
The proposal will increase NV energy’s revenue by $94.8 million per year, which will be produced by the increase in a basic service charge.
Adam Weber, a representative from the International Brotherhood of Electrical Workers local group, told the council he did not support their opposition because the proposal will bring lower bills that are “stable and fair” to all customers.
“Our members need this relief,” Weber told the council. “Currently, net-metering rooftop solar customers are paying less to use NV Energy’s infrastructure, which shifts the costs to other customers … who cannot afford to subsidize a bill.”
“NV Energy proposes to ensure that all customers pay their fair share and we support it.”
Eloy Jara, business manager of the laborer’s union local 169, said their entire union was in opposition. Local 169 is in the construction industry, so Jara said they can see the forecast of power increases coming to Northern Nevada, which will overwhelm the power grid and not keep things balanced on bill usage.
He also described NV energy’s increase proposal as a “drop in the bucket” emphasizing that the need for more “good-paying jobs” will be available and coming to the area.
Reno resident Chris Bell’s concern was the lack of care for energy conservation, and solar users. He called the basic service charge increase a “quantum leap.”
“In all the cost increase we’ve endured since the pandemic, this rise of over 150% must certainly be the boldest and the most misguided in terms of conservation,” Bell said.
“This kind of rate adjustment removes the idea to conserve.”
The PUC will decide whether to pass the NV Energy proposal on Oct. 1.
