July 23, 2004—Nevada Governor Kenny Guinn announced that representatives from the Governors Office, renewable developers, the states two investor-owned utilities, the State Consumer Advocate and the staff of the Public Utilities Commission (PUC) agreed on regulatory and legislative proposals that meet Nevadas strict renewable energy portfolio standard.
The filings are expected to occur in early September. Proposed regulatory changes give the PUC the authority to create a “Temporary Renewable Energy Development” (TRED) trust that receives renewable energy payments from the utilities rate payers, and makes scheduled payments to renewable developers for energy delivered to utilities. New PUC authority also allows separation of such revenues from other payments made to utilities so that they are not “commingled” with general revenues.
These steps are necessary because investors who should provide the capital for renewable projects are concerned that impaired credit status of the two utilities might interfere with the repayment schedules. Statutory changes, if approved by the Legislature, provide protections for the TRED trust similar to those granted to selected utility contracts and certain state revenue bonds, and would prevent a future PUC from countermanding a PUC Resource Plan order that determined a project was in the public interest.
