AG’s office calls NV Energy’s new mandatory demand charge ‘unlawful’

Summary

The Nevada Attorney General’s Bureau of Consumer Protection (BCP) has filed a petition for reconsideration asking the Public Utilities Commission of Nevada (PUCN) to reverse its Sept. 16 approval of a new mandatory daily demand charge for Southern Nevada customers.

The BCP argues the charge is unlawful under NRS 704.085 because it effectively imposes a mandatory time-based rate on all customers (measuring a customer’s highest 15-minute usage each day), which the statute forbids unless a customer opts in. The bureau also says the PUCN’s approval “lacks substantial evidence,” points to strong negative customer reaction, and warns the change would push Nevada into an untested billing structure.

If not overturned, the demand charge would take effect on 16 April and apply to all residential and small business customers; previously only large customers (for example, casinos) faced demand charges. NV Energy maintains the proposal complies with state law and will participate in the reconsideration process.

Key Points

BCP filed for reconsideration on 7 Oct, calling the mandatory demand charge unlawful under NRS 704.085.
The charge bills customers based on their single highest 15-minute usage each day, combined with a reduced per-kWh rate.
The PUCN approved the charge for Southern Nevada on 16 Sept; if unchanged it would start 16 April.
Solar customers cannot use net metering credits to offset the demand charge, potentially adding about $20/month to their bills.
BCP argues the PUCN relied on Nevada’s “uniqueness” as justification — which the bureau says is insufficient to override statute or precedent.
A PUCN decision on the BCP’s petition is scheduled for 18 Nov; NV Energy says it believes the plan complies with law.
The demand-charge approval is part of a wider rate review that increased NV Energy’s revenue requirement by over $118m; the PUCN cited a $50m annual cost shift from net-metering customers to others in its draft order.

Context and relevance

This is a high-impact regulatory dispute: it affects how households and small businesses are billed for electricity across Southern Nevada and may reshape incentives for rooftop solar, load management and energy storage. Demand charges are commonly applied to large commercial users; making them mandatory for smaller customers would be a major shift in rate design and could influence customer behaviour, grid economics and the pace of rooftop-solar adoption.

The case sits at the intersection of state statute (NRS 704.085), regulatory discretion and utility cost recovery. The PUCN’s upcoming reconsideration decision on 18 November will be watched by consumer advocates, solar owners, utilities and regulators in other states considering similar billing changes.

Author’s take

Punchy: This isn’t just a billing tweak — it’s a potential rewrite of who pays for peak demand. If the AG’s bureau prevails, it could block a big cost shift and preserve net-metering benefits; if the PUCN holds, many customers (and rooftop solar owners especially) will see noticeable bill changes. Read the detail if you care about your energy bill or local energy policy.

Why should I read this?

Because if you pay an electricity bill — and who doesn’t? — this could change how you’re charged. Short version: the state AG says the new daily demand charge is illegal and confusing, NV Energy says it’s lawful, and the regulator will decide in November. Quick read that saves you time and tells you whether to start worrying about a possible extra charge on your next bill.