At the final meeting of the full Committee on Energy Choice (CEC) on June 18, the CEC reviewed and approved the draft report of the CEC’s Findings and Recommendations regarding issues and policy considerations surrounding the Energy Choice Initiative (ECI). This effort stems from an Executive Order signed by the Governor in 2017 creating the CEC to identify the legal, policy and procedural issues that need to be resolved, and to offer suggestions and proposals for legislative, regulatory and executive actions that must be taken for the effective and efficient implementation of the Energy Choice Initiative.
The draft report includes the following policy recommendations:
- Nevada must join or contract with an existing ISO, but Nevada’s contract with an ISO must retain Nevada’s ability to control its own fuel mix and demand-side programs.
- The Governor and Legislature should create a joint committee to address specific actions needed for a competitive retail market, housed within the PUCN.
- The PUCN must have the necessary power to establish Providers of Last Resort for back-up service in each area open to competition.
- The Legislature should commission further study of the issues implicated by divestiture.
- The Governor, Legislature, and regulatory agencies should ensure implementation of the ECI is aligned with Nevada’s renewable energy and efficiency goals, and does not harm Nevada’s current programs including renewable energy requirements, services for low-income customers, net metering, storage, or innovation in current or future technologies.
- The Governor and Legislature should consider the creation or funding of incubators or pilot projects for innovative technologies, and should consider policies that promote regulatory flexibility for incentives and renewable energy programs that offer pilot programs to integrate “smart” energy technologies that support DG, storage, and other clean energy advances.
- The PUCN should continue to address resource adequacy and planning reserve requirements through the existing IRP process until a competitive market is established.
- NV Energy should identify must-run generation units and provide options to eliminate the condition(s) giving rise to the must-run status.
- Transmission import and export capacity will need to be studied to see if additional expansion is necessary to join a wholesale market.
- The Legislature and PUCN should consider various consumer protection activities, including changes to the Consumer Bill of Rights and customer education.
- The Legislature and/or PUCN should consider adopting a model terms of Service Disclosure Form for retail energy providers.
- Third-party retail marketers and variable rate contracts should be prohibited, and Nevada should consider prohibiting door-to-door sales and/or telephonic solicitation.