Application of Sierra Pacific Power Company d/b/a NV Energy for Authority to Adjust Its Annual Revenue Requirement for General Rates Charged to All Classes of Electric Customers and for Relief Properly Related Thereto

The Sierra Pacific Power Company (Sierra Pacific) (plaintiff) filed an application with the Public Utility Commission of Nevada (PUCN) to include 6 megawatts (MW) of rooftop solar generation in Nevada’s net energy metering (NEM) program. NEM affects the billing of energy by offering a credit for clean energy. The 6 MW of capacity would have led to a decrease of one cent on the average bill of a residential ratepayer and might have resulted in a 26-cent shifting of cost per month from NEM customers to non-NEM customers. Expert testimony and reports varied as to the extent cost shifting would have occurred due to NEM. It would have led to a decrease of 43 cents per month for the average small commercial customer. The PUCN had phased out NEM in a previous order based on the positive and negative effects of NEM as analyzed in light of 11 known and measurable factors such as interconnection and administrative costs. The PUCN did not include various externalities (costs or benefits of an activity that are passed on to a third party) in its analysis of the value of NEM. NEM had many benefits that were difficult to quantify but affected NEM valuation like promoting job growth and stimulating renewable-energy technology. The State of Nevada had a clear policy position in favor of advancing clean energy. Sierra Pacific sought approval for 6 MW of rooftop solar capacity at NEM rates.