The Nevada General Election is coming up on November 6th. This year’s ballot includes an initiative of high interest for the entire state of Nevada. At Bombard Renewable Energy, Question 3 directly impacts us in the renewable energy industry, and we have a solid idea of what we want residents to vote for.
Before we dive into where we stand, we want to give you all of the information you need to know Question 3 so you’re ready to hit the polls next month.
What is Question 3?
Question 3 reads: “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?”
What Does It Mean?
If Question 3 passes this election, it will require legislature to develop a new electric energy market in Nevada. This means that Nevada’s electricity market will be restructured to remove the current regulated system, which could allow a wide variety of energy service providers to sell energy in Nevada.
Question 3’s approach to electricity deregulation would be a change to the Nevada Constitution. No state has ever used a Constitutional Amendment to deregulate its electricity market.
Has this Worked for Other States?
Fifteen states in the US have restructured their electricity market to permit retail choice. A study by the Guinn Center aimed to analyze the benefit of retail choice in these states, and they found that it depended largely on market design and policy decisions during the implementation phase.
California’s failed attempt to deregulate electricity in led to skyrocketing electric rates, rolling blackouts, the Enron energy resale scandal, and over $40 billion in added costs for consumers.
It has been nearly 20 years since any state tried to deregulate its electricity system because the process has proven to be so unsuccessful.
Now that you have some basic information on Question 3, stay tuned for even more details in the weeks leading up to the election.
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