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2
Privileged and Confidential
Assembly Bill 405 creates two forms of cost that must be addressed
All customers are asked to pay above market rates for energy
Assembly Bill 405 requires NV Energy to purchase excess energy from private
solar generation systems at legislatively mandated pricing, not a price set by a
market
Customers with private solar generation are allowed to receive electric services at below
cost rates
Private generation customers would be placed in the same rate class as all other
customers, yet would receive services other customers do not. A customer with
private solar generation gets to use the electric grid in ways other customers do
not. For example, a customer with private solar generation uses the electric grid
as a place to deliver the excess energy produced by their solar panels and also
gets to rely on the electric grid to back up the private solar generation whenever
they do not have enough energy being produced
Assembly Bill 405 does not address who will be responsible for these costs or administer
the private solar generation program if the Energy Choice Initiative passes in November
of 2018
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Privileged and Confidential
The total cost obligation created by existing private solar generation coupled with the
proposed private solar generation additions in Assembly Bill 405, First Reprint (95%,
90%, 85% step down) is $63.3 million annually or approximately $1.3 billion over the
minimum 20 year term specified in the bill