The Commission has opened a rulemaking proceeding to consider revisions to its regulations on competitive markets and customer choice. The rulemaking was prompted by the submission of the report of the Staff leader of the PC44 Competitive Markets and Customer Choice Work Group. The report recommended initiating a rulemaking to consider proposed draft regulations on the proposed competitive market enhancements of seamless moves (electric and natural gas) and instant connects (electric only). The report also offered proposed regulatory language to resolve an outstanding issue on the performance of criminal background checks and on the voluntary offering of budget billing by suppliers. The report also proposed that in the case of discrepancies between supplier offer postings on the Commission website versus the supplier's own website, that the discrepancy be resolved in the manner most favorable to the customer. The report also requested Commission action on proposed regulations previously filed on the distribution and use of customer interval data in service territories where AMI has been deployed. Comments on the report are due April 18, 2018.

The Commission also requested comment on the report request to move forward with an additional phase III to the proceeding to study, at a minimum, additional changes to the supplier offer website maintained by the Commission and additional non-residential customer protections. The report noted that the Commission may also wish to include other issues in the next phase of the proceeding, such as suppliers provision of electronic notice prior to any change in rate to customers providing an email address as well as the implementation of online lookup tools or wallet enrollments to facilitate customer enrollment in choice.

The Commission will hold a rulemaking session on May 8, 2018, at 10AM to consider publication of the proposed rule revisions as proposed or subject to changes recommended in comments received.

The full texts of the Notice Initiating Rulemaking and Competitive Markets and Customer Choice Work Group Report are available on the NEM Website.

A meeting of the Governor's Committee on Energy Choice was convened this week in Las Vegas and Carson City. The meeting included a presentation by former FERC Commissioner Marc Spitzer who asserted that the era of the vertically integrated utility is over. His remarks were centered on the proposition that the existence of a wholesale market is a foundation to retail competition. He said there have been "very demonstrable benefits, proven benefits, to customers" from wholesale competition. He also said there were "proven benefits and innovative rate plans" for customers in markets with retail competition in those wholesale markets that utilize LMP. He posited that the lack of an organized wholesale market would prevent those benefits from being realized.

The Working Group on Generation, Transmission and Delivery submitted a report to the full committee. The Working Group report recommended:

"A. The PUCN should continue to address Resource Adequacy and Planning Reserve requirements through the existing Integrated Resource Planning Process until an organized open competitive market is established by the Legislature.
B. NV Energy should identify must-run generation units and provide multiple options to eliminate the condition(s) giving rise to the must run status along with the estimated cost and time frame for implementation of each option provided. Construction costs should be recovered through ratepayers.
C. Transmission import and export capacity will need to be studied to see if additional expansion is necessary to join a wholesale market such as CAISO or SPP."

The Working Group on Innovation, Technology and Renewable Energy also submitted a report to the full committee. The Working Group report recommended:

"A. The working group recommends that the Governor’s Committee on Energy Choice encourage the Governor, Legislature, and regulatory agencies and organizations to implement the E.C.I., should it be approved by the voters again in 2018, in a manner that conditions market participation on retail offerings that align with Nevada’s existing goals for renewable energy, energy efficiency and technology, and that do not harm Nevada’s current programs, statutes, and regulations including, but not limited to, renewable energy requirements, energy efficiency, subsidized services for low-income customers, net metering as set out in AB 405 (2017), and storage.
B. The working group recommends that the Governor’s Committee on Energy Choice encourage the Governor and the Legislature to adopt, should the E.C.I. ballot question pass, competitive retail market policies that do not impede progress and innovation in current and future technologies, and to develop and promote innovative policies and programs that advance the use of renewable energy and clean technology.
C. The working group recommends that the Governor’s Committee on Energy Choice encourage the Governor and the Legislature to consider, should the E.C.I. pass, the creation or funding of incubators or pilot projects for innovative technologies that may provide meaningful choice for Nevadans.
D. The working group recommends that the Governor’s Committee on Energy Choice encourage the Governor and the Legislature to consider policies, should the E.C.I. be approved, that promote regulatory flexibility for incentives to renewable energy programs that offer pilot programs to integrate “smart” energy technologies that support distributed generation, storage, and other clean energy advances, including policies that could promote transportation innovation such as green fleets and the use of electric vehicles for storage and distributed generation, and to revisit the topic of community solar gardens during the 2019 Legislative Session.
E. The working group recommends that the Governor’s Committee on Energy Choice encourage the Governor and the Legislature to evaluate, should the E.C.I. ballot question pass, all proposed policies and programs with a consideration of positioning Nevada as a net exporter of energy."

No action on the Working Group reports was taken at the meeting. Action on the reports will be taken as a subsequent meeting agenda item. The full texts of the Working Group Reports are available on the NEM Website.

The status of the Public Utilities Commission's investigatory docket on the energy choice initiative was reviewed. Comments have been filed and workshops were convened. The target date for a final PUC report in the docket is April.

The Hearing Examiner presiding over Dominion's CRG Rate Schedules has issued a report finding that the record does not support approval of the schedules as proposed. Dominion filed an application for approval of six renewable energy tariffs, called the CRG Rate Schedules, to allow existing or new non-residential customers with peak demand of 1,000 kilowatts or more to elect to purchase 100 percent of their energy needs from renewable resources. Dominion's filing is of particular significance because if the Commission approves the CRG Rate Schedules as meeting the statutory definition of a 100% renewable energy tariff under Virginia Code § 56-577 A 5, then “the CRG Rate Schedules would impact the Company’s obligation to allow retail choice to certain customers seeking to purchase renewable energy.” Dominion's petition follows a recent petition filed by Direct Energy in this regard, wherein the Commission found that under Virginia law Direct is permitted to offer such products, so long as Dominion does not have an applicable green tariff to serve relevant customers.

The Hearing Examiner found, "the record of this case is devoid of evidence necessary to determine if, in fact, the CRG Portfolio will be capable of providing 100 percent renewable energy to qualifying customers" and "without such information, the Commission has no means of verifying Subsection A 5 compliance." The Hearing Examiner also explained that "it is particularly important for an incumbent electric utility to establish that the rate for a proposed Subsection A 5 tariff is just and reasonable given the loss of competitive options for customers upon the approval of a Subsection A 5 tariff. . . . if the rate of an incumbent electric utility's Subsection A 5 tariff is unreasonably high, customers will be deterred from taking service under the tariff while at the same time being precluded from pursuing the competitive options which are contemplated by Subsection A 5. Based upon the evidence presented, I am unable to conclude that the CRG Rate Schedules will be just and reasonable and, as such, likely to provide customers with a non-cost-prohibitive (and realistic) option for obtaining 100 percent renewable energy." Finally, the Hearing Examiner found "insufficient evidence to support the conclusion that the CRG rates will be just and reasonable (and likely to attract customers) given the substantial uncertainties associated with the operation of the Company's ratemaking formula and Dominion's unsupported and unreasonable margin proposals."

The Hearing Examiner did however conclude that it would be appropriate to approve Dominion's proposal as experimental rates under Section 56-234 B of the Code for a three year period. Dominion was directed to address in its comments to the Hearing Examiner report whether it would be willing to offer the CRG rates as experimental rates even if they are not approved under Subsection A 5.

Comments on the Hearing Examiner Report are due March 23rd. The full text of the Hearing Examiner Report is available on the NEM Website.