Senator questions need for Nevada energy fee

Legislators were told Monday that Nevada's low-income energy assistance and home weatherization programs are running well - so well that one senator questioned whether the charge that supports the programs should remain in place.

The "universal energy charge" or UEC, created by the 2001 Legislature, collects less than $1 a month from most Nevadans' utility bills. The charge brings in about $11 million a year to support the Welfare Division's energy assistance program for low-income households and the Housing Division's weatherization program to make homes more energy-efficient.

Nancy Ford, the Welfare Division's administrator, told the Senate Commerce and Labor Committee that the energy assistance program is "progressing, it is expanding." She expects to serve between 20,000 and 22,000 households this year, of about 150,000 that may be eligible for help.

"There are an awful lot of families out there in need of assistance," she said.

Charles Horsey, administrator of the Housing Division, said his program weatherizes up to 2,000 homes each year, mostly mobile homes and senior citizens' residences.

Ford said the energy assistance and weatherization programs now have about $15.4 million in combined reserves, but that figure will be down to $1.8 million by the end of fiscal 2007.

Sen. Sandra Tiffany, R-Henderson, said that given the high reserves and limited capacity for weatherization, the UEC may not be necessary.

"I'm just wondering, do we really still need this tax?" she asked.

Tiffany added that nobody's utilities were ever turned off, people were not turned away from the program and no cap was put on it, "and we still have a reserve."

But Ford said the UEC is essential, especially since the federal government only contributes about $3.6 million each year to the energy assistance program, and that may be cut.

"Yes, we've had carry-forward," Ford said of the reserves. "The need is out there, it just takes time to reach the population that needs to be reached."

Ford also presented the committee with a bill draft request to let the housing and welfare divisions transfer funds. She said weatherization is an investment that may reduce or even eliminate the need for energy assistance funding to families, so being able to transfer funds back and forth could help reduce costs in the future.

Sen. Randolph Townsend, R-Reno, agreed.

"The more weatherization we provide, and do it appropriately so that it is efficient, the less low-income citizens have need for (Welfare Division) assistance," he said.

Now, the Welfare Division gets three-quarters of the UEC funds, and the Housing Division gets the rest.

Ford also wants the ability to cap the funding families receive. That would let her slow the use of reserves. She said families that need more than $2,000 a year in help after they pay their share are referred to the weatherization department.

Putting a cap on the payments from the energy assistance program could force families to conserve, said Richard Burdette, Gov. Kenny Guinn's energy adviser.

He also said tightening construction standards so new homes are more energy-efficient may help in keeping future program costs down.