Impact of the Energy Choice Initiative on Nevada Electric Co-ops
November 2, 2018
- Nevada’s Energy Choice Initiative that goes to vote in November poses many risks to electric coops. It could result in billions of dollars in stranded costs from the divestiture of NV Energy’s power supply assets.
- Spreading more than $4 billion of stranded costs over 10 years could result in significant monthly increases for Nevada rate payers.
- Proponents of the deregulation initiative argue the cost of any uneconomic generation asset or above market power contracts are already being paid for by customers under the monopoly arrangement.
- Electric coops face the risk of a shrinking customer base. Customers that fail to opt-in for service from their existing electric coop will automatically be assigned to
a retail provider.
- Other versions of retail choice legislation are expected in Wisconsin, Minnesota, Florida, and Wyoming over the next 12-18 months.
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