NV Energy rang in the New Year with lower rates. As of January 1, all NV Energy customers including commercial, industrial and residential will see reduced energy costs as a result.
In southern Nevada, customers experienced an overall electric rate decrease of 5.22 percent, the third consecutive reduction since July of last year. In northern Nevada, customers experienced an overall electric rate decrease of 4.97 percent. Natural gas customers experienced an overall gas rate decrease of 4.7 percent, the fourth reduction in a year. Electric and natural gas rates continue to be positively impacted by the lower cost of natural gas, which is the primary energy-efficient fuel source for many of NV Energy’s electric generating plants.
“Something that consistently attracts new businesses to Nevada is the fact that we have one of the lowest costs of doing business in the West,” said Jeff Brigger, NV Energy Economic Development Manager. “We also are home to low cost reliable energy, which for many large energy-intensive operations is crucial.”
The most recent reduction is due primarily to costs associated with fuel used in power production and the company’s generating stations. Another factor is the disciplined management of purchased power used to provide electricity. Decreases in rates are a result of mandated Base Tariff Energy Rate (“BTER”) and Deferred Energy Accounting Adjustment (“DEAA”) filings made quarterly to match rates with the cost of fuel for generating electricity and power purchased. These costs are passed on to customers on a dollar-for-dollar basis with no profit to NV Energy.
“We are in a competitive market for power and energy services, and NV Energy has again responded by managing costs in a manner that benefits our customers directly. This is the third consecutive quarterly rate decrease for our customers,” said Paul Caudill, NV Energy President and CEO. “My colleagues and I are committed to providing stable or even lower rates for our customers. The 2015 rate decreases we have been able to pass on to customers are an indication of that commitment.”
The graph below illustrates the changes in wholesale natural gas prices over the past two years.