Pursuant to NRS 704.7821(2)(b), an electric utility may use energy efficiency savings to comply with up to 25 percent of its annual Renewable Portfolio Standard ("RPS"). If a utility intends to use energy efficiency measures to comply with its portfolio standard during any calendar year, of the total amount of electricity saved from energy efficiency measures (for which the utility seeks to obtain portfolio energy credits), at least 50 percent of that amount must be saved from energy efficiency measures installed at the homes of residential customers, unless a different percentage is approved by the PUCN.
Energy Efficiency Programs
Electric utilities implement energy efficiency programs for retail customers that are reviewed and approved by the PUCN. In approving or modifying a program, program cost effectiveness is a significant consideration.
Visit NV Energy's website for information on energy efficiency programs available to the utility's customers.
Energy Efficiency & Conservation Program Verification & Measurement Reports
One component the PUCN uses in determining cost effectiveness of energy efficiency programs is the annual Energy Efficiency and Conservation Program Verification and Measurement Report filed by the utility. This report estimates the actual demand and energy savings achieved by the programs. The estimated savings are used to determine both RPS compliance and cost recovery, discussed below.
Recovery of Lost Sales/Cost Recovery
With the passage of NRS 704.785 in 2009, the Nevada Legislature authorized electric utilities to recover lost sales resulting from energy efficiency and conservation programs. The measurement and verification report serves as the initial basis for the estimated lost sales.