By Brian Beffort
Toiyabe Chapter Director
Nevada voters will face two ballot initiatives this November regarding renewable energy. Each will have enormous impact on the future of renewable energy in Nevada, but not in the same ways. We have received many questions about the difference between these ballot initiatives. Here is a brief explanation on the differences between Ballot Question 3 and Ballot Question 6.
The short answer:
No on Question 3. Yes on Question 6
The long answer:
Even though these measures are both about energy, they are not related. Question 3 is about who provides your energy. Question 6 would require energy utilities, whoever they are, to provide more energy from renewable sources.
And yes, THIS AFFECTS CALIFORNIANS IN THE TOIYABE CHAPTER. Customers in Truckee, parts of Tahoe, and elsewhere in the eastern Sierra receive energy generated by Nevada Energy.
Question 3 (also called the Energy Choice Initiative) is fundamentally about who provides your energy.
Proponents of Question 3 argue that a YES vote would establish “an open, competitive retail electric energy market,” reduce energy market regulations, and prohibit energy monopolies.
However, the Toiyabe Chapter of the Sierra Club has joined the Natural Resources Defense Council, the Southwest Energy Efficiency Project, Western Resource Advocates and others to oppose Question 3 for the following reasons:
- In deregulating Nevada’s energy market, Question 3 would disrupt Nevada’s progress toward a clean, renewable energy future. NV Energy would stop being an energy producer and would simply become an energy distributer;
- Yes, the Sierra Club has had numerous grievances with NV Energy’s policies and tactics in the past. But with the unveiling of its new Integrated Resource Plan, NV Energy has changed course on renewable energy and has proposed new projects that will double its current level of renewable energy generation by 2023;
- If Question 3 passes, NV Energy would have to sell off all of their power plants and cancel these new projects, sending Nevada’s energy market into uncertainty and disarray;
- There is NOTHING in Question 3 that guarantees renewable energy. Don’t let the Q3 supporters fool you into thinking otherwise. The Toiyabe Chapter’s strategy moving forward: whether Q3 passes or not, we will have to pursue renewable-energy legislation and other policies if we want to bring clean-renewable energy to Nevada. Look forward to more news on exactly how we’re doing this;
- Currently, Nevada enjoys some of the lowest electricity rates in the country, thanks to many of NV Energy’s energy efficiency investments. Looking at the energy rates of deregulated energy markets, we’re concerned that Question 3 would raise rates significantly;
- If it passes, Question 3 will be a constitutional amendment, which means if anything goes wrong, it will be very hard to change. No other deregulated states have done so constitutionally; all have been legislative or administrative. In MA, after the AG’s office discovered deceptive sales practices in deregulated market, the AG recommended the legislature undo deregulation. If Question 3 goes sideways in Nevada, the Governor would not be able to step in to address any problems, and it would take years for the Legislature and voters to reverse the damage.
The Public Utilities Commission of Nevada, a bi-partisan body charged with protecting consumers in Nevada, produced a 110-page analysis of Question 3 (also called the Energy Choice Initiative). Here are a few of their findings:
- The ECI is reasonably likely to increase the average monthly bills of Nevadans, at least in the short term, i.e., the first 10 years;
- It will likely require in excess of $100 million in new startup costs and, thereafter, over $45 million in new annual operation and maintenance costs;
- Plain language of the ECI removes the authority of the PUCN and, subsequently, the NV State Legislature to control the generation component of a bundled electricity rate. This will cause new exposure for Nevada ratepayers to market volatility and profit-driven ratemaking practices;
- At least 400 union electrical employees are likely to lose their jobs, and hundreds more may be negatively affected by ECI;
- Net-energy Metering/rooftop solar laws and policies … will likely be negatively affected by ECI;
If you don’t want to read the whole report, look for a summary of findings on page 6.
Ultimately, we fear Question 3 threatens all of Nevada’s clean-energy momentum, and that’s bad for jobs, bad for public health, and bad for clean air and water.
Here is an article by our Chapter Chair, Anne Macquarie, on why she is against the Energy Choice Initiative.
Question 6 is about how much energy utilities are required to provide from renewables.
If passed, the measure would require electric utilities to get 50% of their electricity from renewable sources by 2030. Right now, Nevada gets 80% of its energy from out of state from fossil fuels like gas, oil and coal.
No matter the outcome of Question 3, Question 6 would increase Nevada’s renewable portfolio standard to 50% by 2030. So, no matter who provides your energy, they must provide 50% from solar, wind, and other renewable sources.
The Sierra Club Toiyabe Chapter enthusiastically supports Question 6. Yes, our goal is 100% renewable energy. But before we get to 100%, we have to get to 50%. This initiative is the best chance of making that happen.
Here is more information, from the Yes on Question 6 campaign.