Public Utilities Commission upholds NV Energy's demand charge
LAS VEGAS (KSNV) — After weeks of debate, the Public Utilities Commission has voted to maintain NV Energy's new demand charge, despite opposition from the Attorney General's Office and consumer advocates.
The demand charge, introduced in February as part of NV Energy's general rate case, is a daily fee based on a customer's highest 15 minutes of power use each day.
Customers can potentially lower their bills by spreading out appliance usage.
The change, formally approved by the commission in September, has been criticized by the Attorney General's Office as unlawful, claiming it violates Nevada law.
However, the commission upheld the charge, stating it provides customers with more control over their daily energy usage.
NV Energy asserts that most customers will see little to no change in their bills unless they alter their habits, though solar customers might experience an increase of about $12.
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Several advocacy groups are now considering legal action following the commission's decision to keep the charge in place.
NV Energy clarifies that this is not a time-of-use rate or daily demand pricing plan, and the rate remains constant regardless of the time of day.
NV Energy says the reason for the change was to more accurately capture the cost of delivering energy to customers. It also gives customers another tool to manage their costs and to fix the inequities between rooftop solar and non-rooftop solar customers.
NV Energy Statement:
The Nevada Public Utilities Commission delivered a decision today that reaffirms a commitment to fairness for customers that do not have rooftop solar by implementing a new demand charge for Southern Nevada residential and small commercial customers beginning on April 1, 2026. This change creates more equity in the system by making sure solar customers share the cost of keeping the power grid strong and reliable for everyone.
What does this mean for you?
The demand charge helps fix an inequity between rooftop solar customers and non-rooftop solar customers by ensuring everyone contributes fairly to the grid we all rely on. Rooftop solar customers will see monthly bills increase—on average about $12 per month. For the majority of non-rooftop solar customers, the demand charge will have no impact on the total bill, and many customers will see a small decrease – without making any changes to how they use energy. That’s because the monthly basic service charge and the rate you pay for energy will decrease slightly. With the demand charge, customers now have another way to manage their use and their bill, if they choose to do so.
