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Nevada Plans for Electric Bypass

Fortnightly Magazine - December 1996

As part of its ongoing investigation of electric industry restructuring, the Nevada Public Service Commission (PSC) has issued a report and solicited comment on appropriate regulatory response to customer bypass requests. The PSC emphasized that any response to bypass requests by customers and related rate-discount proposals should assure that "gains made by customers are real economic gains and do not come at the expense of other customers."

The report outlines three possible responses to the bypass problem: 1) a "customer transition charge" of the type recently implemented in Massachusetts (see, Re Cambridge Electric Light Co. 164 PUR4th 69 (Mass.D.P.U.1995); 2) special guidelines for discounting by electric utilities, such as those recently approved in California (see, Re San Diego Gas & E. Co., 170 PUR4th 262 (Cal.P.U.C.1996); and 3) alternate forms of regulation, such as price-cap mechanisms, to reduce the impact on economic efficiency of past cost recovery. Re Issues Regarding Electric Restructuring, Dkt. No. 95-9022, Sept. 3, 1996 (Nev.P.S.C.).

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