NV Energy funds ads pushing daily demand charge in Southern Nevada

A political action committee called Nevadans for Reliable, Renewable, Affordable Energy aired television ads across Southern Nevada in September promoting NV Energy's switch to a daily demand charge. The spots, which ran hundreds of times, told viewers they needed a break and that the new billing method would put money back in their pockets. Ad tracking firm AdImpact reported that the campaign cost just over $93,000 and reached 6.4 million viewers.

The PAC received $170,000 from NV Energy this year. Campaign finance records show the group spent the bulk of that money with R&R Partners, an advertising firm that has long represented the utility. R&R Partners confirmed via email that it produced the public education campaign for the PAC. Hunter Stern, an officer for the group, said that the goal was to inform the public that the demand charge benefits most customers.

The daily demand charge, approved by state energy regulators, changes how customers are billed. It adds a small charge based on the highest 15-minute period of power usage each day. The fee reflects the strain placed on the grid during peak times. Officials say the move is intended to balance costs between customers with and without solar panels. The charge is expected to lower bills for roughly 90 percent of state customers who do not have solar installations.

However, the new rate design could raise costs for solar customers in Southern Nevada. It may also increase bills for low-income households that have less flexibility to adjust their energy usage. Stephanie Chase, research and communications manager at the Energy and Policy Institute, described the PAC as NV Energy and other utility interests in costume. She noted that the utility is attempting to create the appearance of a broad coalition supporting the charge.

The PAC was formed in 2018 to oppose a ballot measure that threatened NV Energy's monopoly. That year, the group raised $3.5 million from NextERA Energy Resources and $850,000 from the International Brotherhood of Electrical Workers Local 1245. The PAC spent $3.9 million over the election cycle, much of it on consulting with the Las Vegas-based Neri Group. The effort helped preserve the utility's status, as only 33 percent of voters supported the initiative during the second required vote in 2018.

This year, the PAC also funded mailers for the June primary election. The mailers targeted state Assemblyman Howard Watts, who was vocally opposed to the daily demand charge. Watts lost his seat in the primary to challenger Miguel Dávila, who was supported by local unions, NV Energy, and Southwest Gas. One of Watts' final acts in office was to request a bill draft that would have prohibited NV Energy from implementing the charge. The motion failed after no other committee members supported it.

The PAC's financial activity had slowed after 2018, but it received $150,000 from NV Energy this year. The group also accepted smaller contributions from various unions and Southwest Gas. Stern acknowledged the gap in activity, stating that the group recently became active again due to the current political climate. John Peragallo, the registered owner of the PAC, and lobbyist Gail Tuzzolo did not reply to calls, texts, or emails from reporters.

The Nevada Environmental Justice Coalition, a group of 14 community organizations, has launched a billboard campaign against the charge. The coalition argues the rate design is experimental and confusing. It also contends that the change increases energy burdens for lower-use and low-income ratepayers. Solar advocacy groups and Aaron Ford, the state attorney general and Democratic gubernatorial candidate, have filed lawsuits against the charge as well.

State lawmakers may revisit the issue during the legislative session that begins on Feb. 1. Lawmakers could pass legislation ending the demand charge during that period. The PAC continues to operate with officers Stern and Tuzzolo, while John Peragallo remains the registered owner. The utility's advertising partner R&R Partners handles the group's media buying and consulting needs.