It’s a new year, and electric rates are going up.

NV Energy said single-family residential customers in Southern Nevada should expect their monthly energy bills to increase by $2 and apartment dwellers will see a $1.33 jump.

According to NV Energy, the rate increases come as the state’s largest public utility received partial approval from the Public Utilities Commission to raise rates to pay for capital projects and improvements to the electrical system.

“This increase covers upgrades we’ve made to our system to improve reliability, modernize infrastructure, a shift to cleaner energy and support growth,” stated a Wednesday news release from NV Energy.

Part of the increase in bills is a result of the utility raising the basic service charge on customers’ bills from $12.50 to $18.50, but NV Energy said it lowered other rates to make the service charge less impactful.

The rate increases should net NV Energy an additional $37.1 million in annual revenue, according to an NV Energy spokesperson. The utility originally sought approval for a $93 million boost in revenue.

The PUC ruling raised the return on equity, or how much the utility can profit, from 9.4 percent to 9.5 percent. In its application to the PUC, NV Energy had sought to increase its return on equity to 10.2 percent. But PUC ruled a reasonable return could range anywhere from 9.3 percent to 9.9 percent.

Although bills are set to go up, NV Energy said that relief could be on the horizon as it expects to lower its rates that cover fuel costs, which are adjusted quarterly, throughout the year.

“Our current forecasts indicate that by the end of 2024, rates will be back in line with those from 2022,” NV Energy said in a news release. “If this holds true, Nevada energy rates will return below the national average late in 2024, where our rates have been for much of the past decade.”

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