Still confused about NV Energy’s demand charge? This tool may help

Still having trouble understanding NV Energy’s upcoming daily demand charge? This new tool may help.

NV Energy has launched a new web tool to help customers understand the daily demand charge which will take effect on Jan. 1. According to a news release from the utility, the tool will show ratepayers personalized insights on how and when they use the most electricity, and how their highest energy usage will affect the daily demand charge.

The new tool will be available for customers through the app or their MyAccount dashboard and, according to the release, is the “latest step” in NV Energy’s effort to educate customers on how the daily demand works and will impact their bill.

Since being approved in September, the daily demand has faced confusion and pushback from consumers, advocacy groups and even an office of the attorney general, which attempted to overturn the charge calling it “unlawful.” The implementation date has been pushed back twice, first from April to October, and now, finally, Jan. 1 by the Public Utilities Commission of Nevada due to lack of customer education.

The idea of the demand charge is to offset the cost borne from serving net metering customers. Between 2018 and 2024, the total cost shift borne by non-rooftop-solar customers in Southern Nevada was $424 million, a utility spokesperson told the Las Vegas Review-Journal last year.

Solar customers cannot use net metering credits to offset the cost of the demand charge and will see an around $12 increase in their bill, according to the utility. The utility has said non-solar customers’ average monthly bill should remain the same or slightly lower if their behavior does not change

How does the demand charge work?

Normally, utilities charge customers per kilowatt hour, amounting to the bill at the end of the month.

The demand charge would completely change that, using a two-pronged billing strategy: how many kilowatts a customer used during their highest 15-minute period of usage combined with the typical per kilowatt hours used each month. But, in April, the per kilowatt hour charge will go down to account for the demand charge.

For example, a customer could use 8 kilowatts one day between 6:15 p.m. and 6:30 p.m. by running the air conditioner, fans and washing machine all at once. According to the draft order from the PUCN on the demand charge, NV Energy plans to charge 18 cents per kilowatt for residential customers. So, in multiplying 18 cents by 8, that equals $1.44, which will be the demand charge for that day.

At the end of the month, each daily demand charge will be added together to get the total demand charge for the entire month.

Contact Emerson Drewes at edrewes@reviewjournal.com. Follow @EmersonDrewes on X.