NV Energy helped fund the PAC behind Southern Nevada TV ads promoting the utility's contested daily demand charge

What happened

A television ad that ran hundreds of times across Southern Nevada in September presented NV Energy's daily demand charge in a positive light, telling viewers it would lower their power bills. The Nevada Independent reported that the ad was paid for by a political action committee called Nevadans for Reliable, Renewable, Affordable Energy, which received $150,000 from NV Energy this year.

According to ad tracking firm AdImpact, cited by the outlet, just over $93,000 was spent airing the ad in September, and it drew 6.4 million impressions. The PAC sent $150,000 to R&R Partners, a firm that represents NV Energy, and the firm confirmed by email that it produced a public education campaign on the demand charge for the PAC.

Who is behind the PAC

Officers and donors

The PAC is registered to John Peragallo, with lobbyists Gail Tuzzolo and Hunter Stern listed as officers, The Nevada Independent reported. Besides the NV Energy money, it took in smaller contributions this year from several unions and Southwest Gas. Peragallo and Tuzzolo did not respond to the outlet's calls, texts or emails.

Stern told The Nevada Independent the group wants the public to know "the demand charge is beneficial to the majority of customers." He also said, "We recently have seen the need to become active again because of the current political climate."

A watchdog's view

Stephanie Chase, research and communications manager at the watchdog Energy and Policy Institute, called the PAC "NV Energy and other utility interests in costume." She told the outlet the utility is trying to make it look like a coalition supports the charge "when there just isn't."

Roots in the 2018 ballot fight

The PAC formed ahead of the 2018 election, when Question 3, the Energy Choice Initiative, sought to end NV Energy's electricity generation monopoly and create an open retail market by 2023. The measure passed with 72 percent in 2016 but needed a second approval, and only 33 percent of voters backed it in 2018.

NV Energy spent a still-record $64 million on that campaign, according to The Nevada Independent. The PAC opposed the question on a smaller scale, collecting $850,000 from International Brotherhood of Electrical Workers Local 1245, the union representing NV Energy workers, and nearly $3.5 million from NextERA Energy Resources, and spent $3.9 million over the cycle. Its activity slowed after that election.

What the daily demand charge does

Under the charge, which state energy regulators approved, customers will pay for the power they use plus a small charge tied to their highest 15-minute period of use each day, meant to reflect strain on the grid. It is intended to offset differences in what solar and non-solar customers pay. When in place, it is expected to lower bills for the roughly 90 percent of customers who do not have solar.

The charge is expected to raise bills for Southern Nevada solar customers, and low-income customers with less flexibility in their energy use could also pay more, the outlet reported. The Nevada Environmental Justice Coalition, a group of 14 community organizations, launched a billboard campaign against it, calling it "an experimental and confusing rate design."

Legal challenges

Solar advocacy groups have filed lawsuits against the charge. So has Aaron Ford, the state's attorney general and the Democratic candidate for governor, according to The Nevada Independent.

The primary election connection

The PAC also paid for mailers in the June primary against Assm. Howard Watts, D-Las Vegas, a vocal opponent of the charge. Watts lost to challenger Miguel Dávila, who was supported by various local unions, NV Energy and Southwest Gas, The Nevada Independent reported.

As chair of the state's interim committee on growth and infrastructure, Watts introduced a bill draft request that would have barred NV Energy from implementing the charge. No other committee member supported the motion, and it failed. Find more of our Nevada election coverage.

What to watch next

• Nevada's legislative session begins Feb. 1, and lawmakers could still pass legislation ending the daily demand charge.
• Lawsuits filed by solar advocacy groups and Attorney General Aaron Ford challenging the charge.
• Rollout of the charge, which is expected to lower bills for most non-solar customers but raise them for Southern Nevada solar customers.