PUCN Misses Opportunity to Create Competitive Framework for Virtual Power Plants

The PUCN recognizes the value of virtual power plants but missed an opportunity to foster a broader market that would lower costs, strengthen Nevada’s economy, and put customers’ best interests in mind.

CARSON CITY, NV—Today’s decision in the Public Utilities Commission of Nevada’s (PUCN) Grid Services Rider (GSR) docket recognizes the value of pay-for-performance demand-side programs, but stops short of creating a broad, competitive structure for virtual power plants (VPPs) that could harness a significant resource for the state and deliver even more benefits to customers.

The PUCN structured the GSR tariff to give NV Energy broad control over implementation, device management, and payments, making participation more difficult for some customers who own devices from qualified aggregators. This structure misses an opportunity to establish a broader market that could have expanded customer choice, encouraged innovation, and helped lower energy costs.

“The PUCN failed to take advantage of the opportunity to create a virtual power plant program that works for all Nevada customers,” said Brian Turner, Senior Director at Advanced Energy United. “The PUCN recognized that customer-sited resources provide value, but then declined to create a competitive framework that would allow all customers and qualified providers to participate easily in a VPP structure. That decision risks slowing innovation, limiting customer choice, and keeping Nevada from realizing the full benefits that VPPs can provide.”

VPP programs are most successful when customers have access to a range of provider models offering cost-effective advanced energy solutions. As the PUCN moves into the next phase of NV Energy’s Integrated Resource Plan, it has the opportunity to course-correct by establishing a more competitive framework that fully values customer-sited resources and incentivizes widespread participation. Advanced Energy United remains committed to working with the PUCN, NV Energy, and stakeholders to address these concerns and make sure Nevada’s VPP programs promote competition, encourage innovation, and deliver benefits for customers.