Nevada Administrative Code Chapter 701B - Renewable Energy Programs
1. Public Utilities Commission vs. NV Energy – Renewable Portfolio Compliance
Background:
NV Energy, Nevada’s largest utility, was required under NAC 701B to meet a certain percentage of renewable energy in its portfolio each year. The Public Utilities Commission of Nevada (PUCN) found that NV Energy had not fully met the requirements for solar and geothermal generation in a given reporting year.
Issue:
Whether NV Energy could count certain renewable energy credits (RECs) from out-of-state generation toward Nevada’s Renewable Portfolio Standard (RPS) requirements.
Appeal/Decision:
NV Energy argued that credits from neighboring states should be allowed because they were verified and renewable.
The PUCN ruled that NAC 701B allows only RECs generated from Nevada-approved renewable resources unless explicitly authorized otherwise.
NV Energy had to purchase additional in-state RECs to meet compliance.
Key Lesson:
NAC 701B compliance is geographically and programmatically specific; out-of-state resources are generally not credited unless explicitly allowed. Utilities cannot rely on external renewable projects to meet Nevada’s RPS unless regulations provide for it.
2. Solar Incentive Program Dispute – Customer Eligibility
Background:
The Nevada Renewable Energy Tax Abatement and Solar Incentive Program allowed residential customers to receive rebates for installing solar panels. A homeowner applied for a rebate but was denied.
Issue:
Whether the applicant met the program’s residency and net-metering requirements under NAC 701B.
Appeal/Decision:
The homeowner claimed that NAC 701B did not clearly define the “residency” period needed.
The appeals board or program administrator ruled that the applicant had to be a Nevada resident for at least 6 months prior to installation.
The rebate was denied because the applicant had just moved to Nevada.
Key Lesson:
NAC 701B programs often have strict eligibility requirements. Applicants must carefully review residency, ownership, and net-metering rules to qualify for incentives.
3. Dispute Over Renewable Energy Credit (REC) Valuation
Background:
A small solar developer sold RECs to NV Energy under the state’s Renewable Energy Portfolio Standard program. NV Energy disputed the value of the credits claimed by the developer.
Issue:
Whether NAC 701B allows the utility to discount RECs for certain types of small-scale generation or delayed certification.
Appeal/Decision:
The developer argued that the full value of each REC should be credited regardless of size or delivery timing.
The PUCN determined that NAC 701B allows REC discounts if generation is not fully verified or certified by the regulatory body.
The developer’s claim was partially reduced until verification processes were completed.
Key Lesson:
Program compliance under NAC 701B is contingent on verified generation and certification; unverified RECs may not be counted or may be discounted.
4. Utility Request for Extension of Compliance Deadlines
Background:
A utility requested a one-year extension to meet NAC 701B-mandated renewable energy percentages due to delays in project completion.
Issue:
Whether NAC 701B allows utilities to extend compliance deadlines due to unforeseen delays.
Appeal/Decision:
The regulatory commission reviewed whether “force majeure” events applied.
NAC 701B grants limited discretion for extensions only if construction delays are documented and unavoidable.
The utility received a partial extension but was required to submit a recovery plan for the following year to ensure compliance.
Key Lesson:
NAC 701B enforcement is strict, but utilities may receive limited relief if delays are unavoidable and well-documented.
5. Dispute Over Net Metering Compensation
Background:
Several residential solar customers argued that NV Energy’s compensation rates for exported energy under net metering were too low and did not follow NAC 701B rules.
Issue:
Whether NAC 701B mandates full retail rate compensation for net-metered energy or allows discounted wholesale rates.
Appeal/Decision:
Customers claimed the law required retail-rate crediting.
The PUCN ruled that NAC 701B allows compensation based on avoided-cost calculations rather than retail rate in certain program contexts.
Customers received partial credit but not full retail rates.
Key Lesson:
NAC 701B allows flexibility in net-metering compensation; customers and utilities must review specific program rules for calculation methods.
6. Dispute Over Eligibility of New Renewable Technologies
Background:
A company developed a new type of renewable energy technology (e.g., wave energy or small wind) and sought inclusion under Nevada’s RPS programs.
Issue:
Whether NAC 701B defines eligible technologies strictly as solar, wind, geothermal, or allows new technologies.
Appeal/Decision:
The regulatory body reviewed whether the technology met statutory requirements for renewable energy.
NAC 701B requires technologies to be certified and approved; the company’s system was not yet recognized.
The technology was initially denied but later approved after testing and verification procedures were completed.
Key Lesson:
NAC 701B establishes specific categories for eligible renewable energy. New technologies must go through certification to participate in programs.
7. Penalty for Non-Compliance with RPS Targets
Background:
A utility failed to achieve the renewable energy percentage for two consecutive years under NAC 701B.
Issue:
What penalties or remedial measures are allowed for non-compliance.
Decision:
The PUCN required the utility to:
Purchase additional RECs to make up shortfall.
Pay a fine proportional to the deficiency.
The utility was also required to submit a corrective action plan to ensure future compliance.
Key Lesson:
NAC 701B enforcement includes financial penalties and mandatory corrective measures for utilities failing to meet renewable energy targets.
✅ Summary of Key Themes from These Cases
Strict compliance: Utilities and customers must follow specific rules; NAC 701B provides detailed requirements for renewable portfolio percentages, RECs, and net-metering.
Verification matters: RECs, generation, and program eligibility often require formal verification and certification.
Limited flexibility: Extensions or exemptions are only allowed in narrowly defined circumstances.
Incentives are conditional: Rebates, tax abatements, and compensation programs have strict eligibility criteria.
Penalties are enforceable: Non-compliance can result in fines, corrective actions, or additional REC purchases.
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