Utility rate hikes in Las Vegas spur need for an increase in advocacy efforts

Exterior view of the NV Energy building Monday, Oct. 20, 2014, in Las Vegas.

For the Las Vegas-based Faith Organizing Alliance, community advocacy is about making sure people have access to basic needs — from water and food to shelter and affordable bills.

Lately, that advocacy has been in response to rising utility bills for Southern Nevada residents.

The group has been outspoken about rate hikes from utility companies, which are impacting the community negatively because of the financial burden placed on families, said Marlon Anderson, one of the organization’s pastors.

“A lot of times, the community are the ones that end up suffering, especially those of the poor community or lower middle-class community,” Anderson said. “ … We really just have to fight just for basic necessities and basic needs, so that our community doesn’t get priced out.”

Rate adjustments increasing costs for Nevada customers by both NV Energy and Southwest Gas went into effect April 1.

With the NV Energy rate adjustments, Southern Nevadans will see an average increase of 1.54%, while Northern Nevadans will see an average increase of 6.41%.

According to Nevada Public Utilities Commission records, average monthly electric costs in Southern Nevada will increase by $2.42 for single-family residential customers and $1.51 for multifamily residential customers. The change will result in a revenue increase of just over $49 million.

The rate adjustments are a result of natural gas prices rising significantly in the past year, NV Energy spokesperson Katie Nannini said in an email.

The cold winter season and greater demand on the West Coast have both contributed to higher electric costs, said Antoine Tilmon, NV Energy Vice President of Customer Operations.

“They’re driven by the cost that NV Energy incurs to generate power for our customers, and then that’s shared amongst all of our customers,” Tilmon told the Sun in February, when the company initially filed for approval of the rate adjustment with the Public Utilities Commission. “So, we work very hard to make sure that we find the lowest costs.”

Though NV Energy’s rates have steadily increased with its most recent quarterly adjustments, Tilmon said the company is optimistic about costs coming back down later this year and in 2024.

The company is doing all it can to keep costs down, he said, while also educating its customers on how to effectively lower their usage.

“By reducing your usage, you reduce your cost, and you reduce the impact of the quarterly adjustments,” Tilmon said.

Several options are available to NV Energy customers who may need assistance in paying higher rates, he added. The company refers qualifying customers to agencies that can help, and also has its own program focused primarily on aiding elderly customers.

Southwest Gas is also committed to helping customers pay increased rates, with company spokesperson Amy Washburn pointing to options like the Energy Assistance Program, Weatherization Assistance Program and flexible payment plans.

“The company wants its customers to know that if they are facing financial challenges, we offer tips, tools and programs to help customers manage their gas bills and usage,” Washburn said in an emailed statement.

One Southwest Gas rate adjustment increases the average monthly cost of single-family residential customers in Southern Nevada by 4.8%, or $2.77. In the same adjustment, multifamily residential customers in Southern Nevada see an increase of 2.5%, or 87 cents.

“The (rate) is updated quarterly to account for changes in the cost of gas the company purchased on behalf of its customers, with no profit to the company,” Washburn said.

Another rate hike by the company that went into effect April 1 will increase the average monthly gas bill of single-family residential customers in Southern Nevada by 16.4%, or $10.49, according to Public Utilities Commission records. It increases the average monthly cost for multifamily residential customers in the region by 14.7%, or $5.61.

The hike will bring in more than $113 million in revenue from Southern Nevada — an increase of 17.7%.

Higher Southwest Gas rates, for which there will be a Public Utilities Commission hearing May 17, were protested by members of the Faith Organizing Alliance and similar organizations, Anderson said.

Raising rates is not the only way to go about meeting demand for utilities, he said, and other accommodations need to be considered so the community doesn’t suffer.

“It is not about getting what we want — it’s about giving the community what it needs,” Anderson said. “We need these companies to realize that — if you’re not going to raise people’s pay — then if you keep raising their bills, they’re not going to be able to afford it eventually.”

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