Renewable Portfolio Standard Background
Nevada's Renewable Portfolio Standard ("RPS"), NRS
704.7801, was initially adopted by Nevada’s Legislature in 1997. Nevada was
the second state in the nation to adopt an RPS.
The RPS has been modified nearly every subsequent legislative
session. It establishes the percentage
of electricity sold by an electric utility to retail customers that must come
from renewable sources. More specifically, electric utilities are required to
generate, acquire or save with portfolio energy systems or energy efficiency
measures, a certain percentage of electricity annually.
Amendments in 2019 which increased the RPS also included
legislative findings that this increased RPS supports the state’s policies
to:
Encourage and accelerate the development of new
renewable energy projects for the economic, health and environmental benefits
provided to the people of Nevada;
Become a leading producer and consumer of clean
and renewable energy with a goal of achieving by 2050 an amount of energy
production from zero carbon dioxide emission resources that is equal to the
total amount of electricity sold by providers of electric service in Nevada; and
Ensure that the benefits of the increased use of
portfolio energy systems and energy efficiency measures are received by the
residents of Nevada.
Entities Covered
RPS compliance is required from “electric utilities”,
defined as any public utility that is in the business of providing electric
service to customers, holds a certificate of public convenience and necessity,
and which had a gross operating revenue of $250,000,000 of more in the past
seven calendar years. Public utilities,
including cooperative associations, nonprofit corporations, and nonprofit associations
now also fall into RPS compliance requirements at certain levels of electricity
generation.
The 2019 amendments to the RPS also require compliance by
“providers of electric service”, defined to mean any person or entity that is
in the business of selling electricity to retail customers for consumption in Nevada, regardless of whether the person or entity is otherwise subject to
regulation by the PUCN.
Standards Commencing in 2019
The percentage of electricity sold by a provider to its
retail customers from renewable sources increased to the following percentages
beginning in 2020:
1. For calendar year 2020, not less than 22 percent
of the total amount of electricity sold by the provider to its retail customers
in Nevada;
2. For calendar year 2021, not less than 24 percent
of the total amount of electricity sold by the provider to its retail customers
in Nevada;
3. For calendar year 2022 and 2023, not less than
29 percent of the total amount of electricity sold by the provider to its
retail customers in Nevada;
4. For calendar year 2024 through 2026, not less
than 34 percent of the total amount of electricity sold by the provider to its
retail customers in Nevada;
5. For calendar year 2027 through 2029, not less
than 42 percent of the total amount of electricity sold by the provider to its
retail customers in Nevada;
6. For calendar year 2030 and for each calendar
year thereafter, not less than 50 percent of the total amount of electricity
sold by the provider to its retail customers in Nevada.
In addition, energy
efficiency measures can currently be used to comply with RPS requirement but
that credit option is eliminated by 2025.
Specifically, in 2013 and 2014, up to 25 percent of RPS compliance may
come from energy efficiency measures.
Between calendar years 2015 and 2019, up to 20 percent of the annual RPS
requirement can come from energy efficiency measures. During each calendar year 2020 to 2024, not
more than 10 percent of RPS compliance may be based on energy efficiency
measures. For calendar year 2025, and
each calendar year thereafter, no portion of that amount may be based on energy
efficiency measures.
Regulatory Review and Compliance
Each year, providers of electric service must submit a
report to the PUCN providing evidence of their compliance with the RPS. The
PUCN determines if the provider has met the requirements and, for a utility or
provider of a new electric resource that fails to meet the RPS, the PUCN may
impose a fine, provide an exemption or take other administrative action. The PUCN also adopts regulations that
establish a system of portfolio energy credits that may be used by a provider
to comply with the RPS. Under the 2019
amendments to the RPS, the PUCN also reviews requests related to ratemaking
around certain utilities’ and renewable energy facilities.
The Governor’s Office of Energy is now tasked with receiving
RPS compliance reports from electric service providers subject to 704.787, such
as the Colorado River Commission, to detail information relating to the actions
taken by the provider to comply with its portfolio standard. These compliance reports shall be submitted
to the Office of Energy on or before July 1 of each year and must contain
information delineated in NRS 704.7825, the same information provided by all
providers of electric service to the PUCN, including:
1. The amount of electricity which the provider generated, acquired or
saved from portfolio energy systems or efficiency measures during the reporting
period and, if applicable, the amount of portfolio energy credits that the
provider acquired, sold or traded during the reporting period to comply with
its portfolio standard;
2. The capacity of each renewable energy system owned, operated or
controlled by the provider, the total amount of electricity generated by each
such system during the reporting period and the percentage of that total amount
which was generated directly from renewable energy;
3. Whether, during the reporting period, the provider began construction
on, acquired or placed into operation any renewable energy system and, if so,
the date of any such event;
4. Whether, during the reporting
period, the provider participated in the acquisition or installation of any
energy efficiency measures and, if so, the date of any such event; and
5. Any other information that the Commission by regulation may deem
relevant.
More Information
For more information about the Renewable
Portfolio Standards, the following links will take you to recent legislation,
statutes and regulations.