Here’s your guide to the Energy Choice Initiative
Millions have been spent in Nevada on each side of the Energy Choice Initiative, a measure that passed overwhelmingly in 2016 and could be amended into the Nevada Constitution if voters approve it this year.
Ballot Question 3 asks the Nevada Legislature to create a competitive energy market in place of NV Energy’s monopoly by July 2023. The measure seeks to give choice to all energy customers, not just rural cooperatives that get exemptions and large companies that pay to exit the system. If it passes, lawmakers will grapple with how those choices can be added without putting consumers at risk as they choose from dozens, if not hundreds, of plan options.
In a nutshell
Voting “yes” asks the Nevada Legislature to create a competitive energy market that would open doors for other energy companies — not just NV Energy — that wish to do business in Nevada.
Voting “no” leaves the market as is.
The measure is largely supported by Switch, which has a data center in Nevada and is moving forward with plans for a large solar project. NV Energy is opposing energy choice, putting millions toward the Coalition to Defeat Question 3.
What would be deregulated under the proposed law? There are three aspects to the energy market: generation, transmission and distribution. The measure requires competition in the generation category. Transmission and distribution do not need to be deregulated to create the competitive market, according to the measure.
What happens to NV Energy? NV Energy would no longer have a monopoly over generating power and marketing it to consumers. The utility may need to divest itself of its generation assets to make room for others if energy choice passes.
What happens to the Public Utilities Commission of Nevada? Under energy choice, the market itself would set its own prices based on competition. Setting prices was the Public Utilities Commission’s responsibility, and energy choice would shift the focus of the group to consumer protection, according to proponents.
What happens to rates? Both sides of the energy choice debate say their plan is the best for rates. Supporters point out that rates went down in some states that switched to energy choice, such as New York, while opponents say Nevada’s rates are already lower than many parts of the country. A Guinn Center report did not side with energy choice, citing uncertainty and saying prices could be swayed by the ballot measure’s implementation and oversight.
What states have already switched to competitive markets? Nevada would be one of 24 states offering some type of energy choice. Proponents in Nevada have pointed to restructured energy markets in Texas and Pennsylvania as examples. Opponents point to California’s deregulated market and the “brownouts” that resulted after.
Would choice increase renewable energy use in Nevada? Energy choice would give Nevada consumers three options: a competitive market, self-generation or collaborative efforts such as community solar projects. These local cooperatives could give residents,