Nevada Power lining up developers for energy rebate program

LAS VEGAS (AP) - Southern Nevada electric utility and state officials are backing a $14.5 million program to provide rebates to home builders to install energy-efficient air conditioners that would reduce power bills for homeowners.

Nevada Power Co., state Public Utilities Commission staff, the state attorney general's Bureau of Consumer Protection and air conditioner maker Freus have signed an agreement that would let the Las Vegas-based utility give rebates to home builders during the first half of next year.

About one-fifth of the money would go toward rebates of $300 to $900 to homeowners who want to replace older air conditioners with energy-efficient units.

The participants want to start offering builder rebates Jan. 1. But during a hearing Tuesday, Commissioner Carl Linvill said he wants more information about the cost-effectiveness of the program before he supports it. Linvill said the PUC should schedule hearings if staff and bureau find the program won't be cost-effective.

Thirty builders are set to participate in the program, said Bob Balzar, Nevada Power's renewable energy and conservation program director. They include KB Home, Beazer Homes, Lennar Homes, Pulte Homes, DR Horton, Rhodes Homes and Pardee Homes.

If approved, an estimated 20,000 new homes built during the first half of next year could get energy-efficient air conditioners, Balzar said. The average rebate to the home builder would be $300 per unit.

Home buyers would see lower energy bills, Balzar said.

Using more energy-efficient air conditioners would reduce the number of new power plants Nevada Power would need to build and cut the amount of expensive peak power it purchases during the summer, Balzar said. Costs of power plant investments and high-priced wholesale power are passed on to customers.

Homeowners who want to replace existing air conditioners with an energy efficient units also will be eligible for rebates.

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On the Net:

Nevada Power Co.: http://www.nevadapower.com 

Nevada Public Utilities Commission: http://www.puc.state.nv.us 

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Information from: Las Vegas Review-Journal, http://www.lvrj.com