Nevada Seeks to Deregulate its Energy Market
June 4, 2018
Nevada is seeking to deregulate its energy market for the second time in 30 years in hopes to reduce electricity rates for its citizens and businesses. Legislature preventing this may soon be passed, as a vote in 2016 was a landslide victory to appeal the previous deregulation effort in the 1990’s. The final vote for this matter will take place in November of this year, and has the support of Las Vegas’ largest corporations who want to detach from Nevada Energy, (NE) the current monopoly supplier for Nevada.
News present a strong case for a deregulated market, largely given that NE has failed to instate more renewable energy sources in its portfolio, and hopes of improving service. In addition to this there is controversy over NE not appropriately addressing policy on use of solar energy, where customers were placed in an unfair position. This led to a conflicting withdrawal of numerous solar energy companies from Nevada, and a economic backfire.
Research on other states with a deregulated energy market shows the benefits deregulation can bring when adopted. In Texas where a deregulated market was adopted in 2002, residential rates increased by 2% on September of this year, while in Nevada they increased by 6%. That same month business rates decreased by 1.8% in Texas, increasing in Nevada by 9.1%. Voters need to be educated on how this could affect them for the November vote, as it is a step which cannot be taken back.
The proposed deregulation would set bases for reductions in rates, and kick start progress to fit the new Renewable Portfolio Standard updated in 2017.