In order to provide customers with lower energy costs this summer, NV Energy is making a filing with the Public Utilities Commission of Nevada (PUCN) on May 15 that will request to reduce energy costs for customers, starting July 1, 2023. The reduction will vary between approximately five percent and 14 percent for July, August and September, depending on a customer’s location and type of electric service they receive.
The price NV Energy pays for natural gas consistently increased in 2022 by more than 70 percent and
peaked in January of 2023, increasing nearly 500 percent since 2021. These significantly higher natural gas prices caused NV Energy’s costs to increase. NV Energy files quarterly rate adjustments based on the actual natural gas prices paid by the company to recover these costs. Provided natural gas prices remain stable, the cost increase customers are currently experiencing is expected to decrease over the next year as the high 2022 natural gas costs are paid off and NV Energy experiences lower natural gas prices in the future.
However, NV Energy recognizes that waiting for these prices to drop over the next year, does not provide cost relief fast enough for customers that rely on electricity for cooling their homes and businesses during the hot summer months. To speed up price relief, NV Energy is requesting that the Public Utilities Commission of Nevada modify how NV Energy collects its natural gas costs to provide rate relief to our customers.
“Our customers have all been impacted by the higher natural gas prices and the corresponding effect
it has on our customers’ rates,” said Doug Cannon, NV Energy President and CEO. “Recognizing the challenges higher energy rates create for customers, especially in the summer months, we decided
to step in and deliver a solution. The goal of this proposal is to help reduce costs for customers during the hot summer months when energy bills are at their peak due to high electricity usage.”
Quarterly energy adjustments are the result of the increased cost of delivering energy from the previous 12- months. These are a pass-through cost. In other words, customers pay the same price that NV Energy pays and the company does not mark up costs on natural gas purchases.
About NV Energy: NV Energy provides a wide range of energy services to more than 1.5 million customers throughout Nevada and a typical annual tourist population of 54 million. NV Energy, Inc. is a holding company whose principal subsidiaries, Nevada Power Company and Sierra Pacific Power Company, do business as NV Energy. NV Energy is headquartered in Las Vegas, Nevada. Information about NV Energy is available on the company’s website, Twitter, Facebook and YouTube pages, which can be accessed via nvenergy.com.