TEXT OF THE NEVADA BALLOT QUESTION

Nevada Legislature to Minimize Regulations on the Energy Market and Eliminate Legal Energy Monopolies Amendment

"Shall Article 1 of the Nevada Constitution be amended to require the Legislature to provide by law for the establishment of an open, competitive retail electric energy market that prohibits the granting of monopolies and exclusive franchises for the generation of electricity?"   [See full text of the initiative below]

BACKGROUND ON THE INITIATIVE

• The initiative was filed by Nevadans for Affordable Clean Energy Choices.  Signatures from 10% of voters were required to get on the ballot (nearly 20% were submitted).
• Two main factors led to dissatisfaction and rebellion against monopoly power and entitlement:
  • Large businesses (casinos and others) were prevented from acquiring their own cheaper and cleaner electricity unless they paid monopoly utility NV Energy enormous "exit fees".  [Overview of Initiative]
  • Great animosity toward the Nevada Public Utilities Commission (PUC) arose after they imposed unprecedented charges on rooftop solar owners, changed signed contracts retroactively, and destroyed the thriving solar industry in Nevada.  [GTM Article]
  • [Nevada Sagebrush Editorial]  [Las Vegas Sun Editorial]  [Nevada Sen. Reid]  [Post-election Summary]
• Video (9:16)  –  Jon Wellinghoff, former Chair of the Federal Energy Regulatory Commission (FERC), describes the progress toward deregulation and competitive electricity markets in Nevada in 1999, why the Enron market manipulation in California put a stop to deregulation, and why it can't happen again.
• Video (14:36)  –  Remarks from 4 panelists who supported the Energy Choice Initiative.

TEXT TO BE ADDED TO THE NEVADA CONSTITUTION

1. Declaration of Policy: The people of the State of Nevada declare that it is the policy of this State that electricity markets be open and competitive so that all electricity customers are afforded meaningful choices among different providers, and that economic and regulatory burdens be minimized in order to promote competition and choices in the electric energy market. This Act shall be liberally construed to achieve this purpose.

2. Rights of Electric Energy: Effective upon the dates set forth in subsection 3, every person, business, association of persons or businesses, state agency, political subdivision of the State of Nevada, or any other entity in Nevada has the right to choose the provider of its electric utility service, including but not limited to, selecting providers from a competitive retail electric market, or by producing electricity for themselves or in association with others, and shall not be forced to purchase energy from one provider. Nothing herein shall be construed as limiting such persons' or entities' rights to sell, trade or otherwise dispose of electricity.

3. Implementation: (a) Not later than July 1, 2023, the Legislature shall provide by law for provisions consistent with this Act to establish an open, competitive retail electric energy market, to ensure that protections are established that entitle customers to safe, reliable, and competitively priced electricity, including, but nor limited to, provisions that reduce costs to customers, protect against service disconnections and unfair practices, and prohibit the grant of monopolies and exclusive franchises for the generation of electricity. The Legislature need not provide for the deregulation of or distribution of electricity in Order to establish a competitive market consistent with this Act.
(b) Upon enactment of any law by the Legislature pursuant to this Act before July 1, 2023, and not later than that date, any laws, regulations, regulatory orders or other provisions which conflict with this Act will be void. However, the Legislature may enact legislation consistent with this act that provides for an open electric energy market in part or in whole before July 1, 2023.
(c) Nothing herein shall be construed to invalidate Nevada 's public policies on renewable energy, energy efficiency and environmental protection or limit the Legislature's ability to impose such policies on participants in a competitive electricity market.

4. Severability: Should any part of this Act he declared invalid, or the application thereof to any person, thing or is held invalid, such invalidity shall not affect the remaining provisions or application of this Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are declared to be severable. This subsection shall be construed broadly to preserve and effectuate the declared purpose of this Act.