Tax reform means utility rates will go down
NV Energy says the federal tax reform legislation approved by Congress will enable the utility to reduce gas and electric rates enough to save Nevada customers a total of $84 million a year.
The reduction in Southern Nevada electric rates is $58.8 million a year for Nevada Power. In the north, Sierra Pacific Power’s reduction translates to a $22.1 million reduction in electric charges and $2.8 million in for gas customers.
The gas price reduction doesn’t effect Carson City customers who get their gas from Southwest Gas instead of Sierra Pacific.
The average single family residential customer in the north will see a reduction $2.81 or 3.19 percent lower electric bill and pay $1.08 percent or 2.72 percent less for gas each month.
In the south, the average electric customer would see a $4.08 smaller monthly bill — about 2.81 percent.
The company, which also provides electric service in southern Nevada, has asked the Public Utilities Commission of Nevada to put the reductions in place April 1.
The PUCN is scheduled to hear the applications in a March 16 hearing in Carson City and Las Vegas.
Utility officials say the reductions are possible because the tax reform bill lowered the maximum federal income tax rate from 35 percent to 21 percent.
“Opposed to waiting until the next general rate reviews, which are required by law every three years, passing these savings on now is simply the right thing to do,” said Paul Caudill, NV Energy Chief Executive Officer.