New Program From Utility Nevada Power to Develop 'Green' Rates
Sep 21 - Las Vegas Review-Journal
Sep. 21--Nevada Power Co. will be developing a proposal for "green" rates that allows customers to pay higher rates to support the use of alternate power sources, such as wind and solar energy.
Under these programs, customers pay extra for electricity coming from
so-called renewable energy sources. It's a way of encouraging utilities to
supplement electricity from conventional coal and natural gas-fired power plants
with so-called renewable power.
The Public Utilities Commission on Friday directed the Las Vegas electric
utility to propose a green power rate as part of the company's next general rate
case in October 2005.
However, the commission gave Nevada Power a lot of choices in what kind of
program to propose.
"We're going to be looking at programs all over the West," said
Jack Leone, a spokesman for Nevada Power.
The utility, for example, could review the Solar Partner program at Arizona
Public Service Co. of Phoenix. That utility's residential customers are invited
to pay $2.64 more each month to ensure that 15 kilowatt hours of electricity is
generated by an Arizona Public Service solar plant. They also may buy additional
15 kilowatt hour blocks.
Leone, however, didn't have any details on what Nevada Power will propose a
year from now.
Similarly, the PUC was reluctant to elaborate on what the company may
consider. "We don't want to specify as to what type of filing the company
should make," said Rebecca Wagner, a PUC spokeswoman.
This much is clear from the PUC meeting Friday: The program will be voluntary
and will allow customers to pay extra for green power. In return, participants
could be shielded from some of the impact of volatile natural gas prices, which
sometimes drive up conventional power costs.
Commissioners said any renewable energy sources developed under the program
should be in addition to any green power sources mandated under the state's 2001
renewable energy portfolio law. Under this law, Nevada Power is required to get
increasing proportions of its power from renewable resources, until it reaches a
maximum of 15 percent by 2013.
Numerous utilities are required to buy or generate increasing amounts of
their power from renewable resources, but many power companies also offer
customers a way to contribute toward further renewable power generation.
Some utilities allow customers to buy a specified amount of green power for a
specific amount, said Jon Wellinghoff, an energy attorney with Beckley
Singleton.
Others allow customers to make additional payments for unspecified renewable
power.
Wellinghoff, however, favored a program that would allow customers to
contribute funds to build solar systems at schools, public buildings or
buildings used by nonprofit organizations.
These systems have several advantages. The electricity generated is used at
the site, eliminating the loss from carrying the electricity over lines to other
customers and freeing up capacity on power lines for other customers, he said.
The projects would benefit the local economy, provide power price stability
to the user, and improve electric power reliability in Southern Nevada, he said.
In a related move, the PUC ordered Nevada Power to review the possibility of
building a renewable energy system on one of their facilities, such as the roof
of its headquarters.
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