How to Leave NV Energy Bundled Service in Nevada: NRS 704B, TOU Schedules, and Cannabis Facility Options

Why this is not a standard switching guide

Nevada has no retail electric choice for general commercial customers [nrs-704b]. Voters rejected the Energy Choice Initiative (Question 3) in November 2018 by more than 67 percent [nv-independent-q3-2018]. NV Energy (Nevada Power south, Sierra Pacific north) is the bundled default provider for most cannabis facilities [nve-south-commercial-rates].

The steps below cover the 704B exit path for large loads and the rate optimization path that applies to most cultivators, processors, and dispensaries.

Step 1: Confirm bundled NV Energy service

Check the bill header. Nevada Power Company serves Las Vegas and Clark County. Sierra Pacific Power serves Reno and northern Nevada [nve-south-commercial-rates]. Rural cooperatives outside PUCN rate regulation follow different rules.

The eligibility question for a cannabis business is usually account structure, not license type. A dispensary on a landlord's master meter cannot pursue 704B or TOU optimization independently. A grow in buildout has no account to analyze until service is energized. Put the account in the licensee's legal name before filing anything with the PUCN or requesting interval data from NV Energy.

If the bill shows a cooperative or public power district rather than Nevada Power or Sierra Pacific, NRS 704B and the tariff tables on this site may not apply. Confirm territory with PUCN staff before budgeting a 704B exit [pucn-electric].

Step 2: Calculate average annual load

NRS 704B eligibility requires average annual load of 1 MW (1,000 kW) or more [nrs-704b]. Calculate:

Average kW = Total annual kWh / 8,760 hours

A facility with 4,000,000 kWh annual usage averages about 457 kW. A campus with 9,000,000 kWh averages about 1,027 kW and may qualify.

Most single-building cultivators fall below 1 MW average [nrs-704b].

Do not confuse peak kW with average load. A grow that peaks at 400 kW during flowering but averages 250 kW over the year is still a 250 kW average customer for 704B purposes. Use a full twelve-month kWh total, not a nameplate lighting calculation.

If the facility is below 1 MW average, skip Steps 6 and 7's 704B filing and focus on Steps 3 through 5 and 7 through 8. That is the path for the vast majority of Nevada's 103 licensed cultivators and 107 dispensaries [nrs-704b].

Step 3: Review rate schedule and class

Southern Nevada classes effective January 1, 2026 [nve-south-commercial-rates]:

Schedule	Threshold
GS	Up to 3,500 kWh/month
LGS-1	Demand up to 299 kW
LGS-2	300 to 999 kW
LGS-3	1,000 kW or greater

Optional TOU versions shift demand charges to summer on-peak: June 1 through September 30, 3:01 p.m. to 9 p.m. [nve-south-commercial-rates].

Northern Sierra Pacific accounts use GS-1 through GS-4 with breakpoints at 50 kW, 500 kW, and 1,000 kW [nve-south-commercial-rates]. A Reno processor on GS-3 faces a different dollar-per-kW stack than a Las Vegas grow on LGS-2 at the same peak kW.

Record whether the account is on standard or optional TOU. TOU election is handled through NV Energy, not the PUCN. Changing schedules may require a billing cycle notice period; ask the utility account manager before assuming an immediate switch.

Step 4: Pull interval data and map on-peak demand

Request AMI interval data from NV Energy. Identify how much of monthly peak demand falls inside the TOU on-peak window. A grow with lights on from noon to midnight sets peak demand squarely in the on-peak block.

From each bill, also record:

Field	Why you need it
Account and meter numbers	Schedule change requests
Rate schedule code	GS vs LGS vs TOU variant
Monthly kWh and billing demand kW	Class placement and 704B math
DEAA and rider lines	Bundled cost baseline
Total dollars	All-in cents/kWh vs 9.83 EIA average [eia-epm-5-6-a]

The commercial utility bill guide shows where each line sits on a typical invoice.

If interval data is unavailable, use monthly peak kW from the bill and assume the peak occurred during production hours. That is conservative for TOU modeling but sufficient for a first-pass decision.

Step 5: Model TOU vs. standard costs

Compare total bill on current schedule against projected bill if peak demand shifted outside on-peak hours. A 500 kW grow shifting from on-peak to off-peak on TOU avoids $5.48/kW demand on each on-peak kW [nve-south-commercial-rates].

Model at least three scenarios:

1. Current schedule, trailing twelve months actual
2. Optional TOU with existing load shape (often worse for afternoon-lighting grows)
3. Optional TOU with lighting shifted to start after 9 p.m. or end before 3 p.m. in summer

Include facilities charges ($4.60/kW on LGS-1 in southern Nevada) and energy charges, not demand alone [nve-south-commercial-rates]. NV Energy account managers can run official schedule comparisons when you provide interval data.

There is no supplier offer to beat for sub-megawatt accounts. The benchmark is bundled NV Energy service at roughly 9.83 cents/kWh commercial average statewide in June 2026, plus demand lines on LGS schedules [eia-epm-5-6-a]. Question 3's defeat in 2018 means there is no competitive default supply price to compare against [nv-independent-q3-2018].

Step 6: Evaluate NRS 704B (large loads only)

If average annual load meets 1 MW [nrs-704b]:

1. Prepare application for January 2 through February 1 filing window
2. Identify a provider of new electric resources
3. Budget for PUCN impact fee covering unrecovered deferred energy balances
4. Plan for distribution-only service tariff after approval
5. Allow at least 280 days before intended start

Casinos used this path; impact fees were substantial [nrs-704b]. Confirm current PUCN outcomes before budgeting.

What to gather for a 704B application

Document	Purpose
Twelve months interval or monthly load data	Prove 1 MW average eligibility [nrs-704b]
Provider of new electric resources agreement	Identify who will supply energy
Impact fee estimate or utility testimony	Budget total exit cost [nrs-704b]
Distribution Only Service tariff analysis	Model delivery-only charges post-exit [nve-south-commercial-rates]
Legal entity match to CCB license	Account must match eligible customer of record

File through the PUCN docket system during the January 2 through February 1 window [nrs-704b] [pucn-electric]. The application must arrive at least 280 days before intended purchases begin, so a January 2027 filing targets purchases starting roughly November 2027 [nrs-704b].

PUCN timeline and denial rules

If the Commission does not act within 210 days, the application is deemed denied under NRS 704B [nrs-704b]. Plan legal and engineering review before the filing window, not during it.

Approved customers receive Distribution Only Service from NV Energy and buy energy from the provider under a separate contract [nrs-704b]. Billing becomes dual: NV Energy invoices transmission, distribution, and metering; the provider invoices energy. There is no consolidated supplier bill like Maryland's utility-consolidated option.

Contract rules at the provider side

704B provider contracts are private commercial agreements, not PUCN-regulated supplier tariffs. Before signing, verify:

• Term and renewal (auto-renewal and notice periods are not standardized like SOS states)
• Early termination and performance security
• Fuel and index pass-through language, because Nevada has no RPM capacity market to reference [nrs-704b]
• What happens at contract end (return to bundled NV Energy service requires a new arrangement; there is no automatic default supplier)

Missing the January filing window means waiting a full year [nrs-704b]. That is the most common 704B mistake after assuming retail choice exists.

Step 7: Apply for PowerShift incentives

Business Energy Services covers prescriptive and custom efficiency measures [nve-bes-summary]. Storage incentives pay $0.32 to $0.60 per Wh with higher tiers for TOU customers [nve-storage-incentive].

Apply before purchasing equipment. Custom grow-light projects need savings documentation because no horticulture measure is prescriptive [nve-bes-summary]. Storage projects on TOU schedules qualify for higher incentive tiers, which pairs with Step 5 modeling [nve-storage-incentive].

Instant Discount on eligible LED products through participating distributors cannot combine with Retrofit on the same project [nve-bes-summary]. Pick one path per upgrade.

Step 8: Verify on the next summer bill

After schedule change or load shift, compare June through September on-peak demand against the prior year.

Check three lines on the first post-change bill:

1. Rate schedule code matches what you requested
2. Billing demand kW moved in the expected direction
3. Total dollars per kWh against the 9.83 cent EIA commercial average as a sanity check [eia-epm-5-6-a]

If you filed 704B and received approval, confirm the bill split: NV Energy should show Distribution Only Service and the provider should invoice energy separately [nrs-704b]. DEAA lines may still appear on the delivery bill [nrs-704b].

Calendar annual review every January: re-run average load math for 704B eligibility, re-evaluate TOU before June on-peak season, and check PowerShift funding [nve-bes-summary].

Common mistakes in Nevada

Assuming retail choice exists. Question 3 failed in 2018 [nv-independent-q3-2018]. Broker-style supplier shopping is not available for sub-1 MW accounts.

Missing the 704B filing window. Applications are accepted only January 2 through February 1 [nrs-704b]. Missing the window means waiting a full year.

Running lights through on-peak on TOU. The 3:01 to 9 p.m. window overlaps with typical afternoon-evening lighting blocks [nve-south-commercial-rates].

PowerShift incentives to apply before changing schedules

Business Energy Services covers prescriptive and custom efficiency measures [nve-bes-summary]. Before electing TOU, consider:

• Custom LED retrofit through the custom track (no horticulture prescriptive measure listed) [nve-bes-summary]
• Commercial storage incentive at $0.32 to $0.60 per Wh, higher tiers for TOU customers [nve-storage-incentive]
• Instant Discount LED through participating distributors [nve-instant-discount]

Storage paired with TOU can discharge through the on-peak window and reduce billed on-peak kW [nve-storage-incentive]. Model payback using your interval data before ordering batteries.

When 704B might make sense for a cannabis campus

A multi-building cultivation campus averaging 1 MW or more annual load might qualify for NRS 704B [nrs-704b]. The application requires:

1. Load study showing 1 MW average over 8,760 hours [nrs-704b]
2. Filing between January 2 and February 1 [nrs-704b]
3. Budget for PUCN impact fee covering deferred energy balances [nrs-704b]
4. Distribution Only Service tariff after approval [nrs-704b]

Casino exits set precedent but impact fees were large [nrs-704b]. Most single-building cultivators at 500 kW peak average well under 1 MW and should optimize TOU instead [nrs-704b].

Nevada commercial power averaged 9.83 cents per kWh in June 2026 [eia-epm-5-6-a]. TOU and storage optimization often beats 704B complexity at sub-megawatt scale.

Northern Nevada differences

Sierra Pacific Power uses GS-1 through GS-4 with breakpoints at 50 kW, 500 kW, and 1,000 kW [nve-north-commercial-rates]. Reno-area facilities should model TOU using the northern rate insert, not southern LGS assumptions [nve-north-commercial-rates]. Conditional licenses in northern Nevada may land on different class breakpoints as buildouts complete [ccb-active-license-list].

Where to go next

• NV Energy utility page.
• Nevada commercial electricity rates.
• Which states let cannabis facilities shop for electricity.
• Case study: 704B exit analysis.

Confirm current 704B docket requirements with the PUCN before filing [pucn-electric].