Nevada's Public Utilities Commission approves investigation into NV Energy overcharging

Emerson Drewes, Las Vegas Review-Journal on Jun 24, 2025

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The Public Utilities Commission of Nevada has approved an investigation into NV Energy for overcharging “tens of thousands” of customers.

On Monday, PUC voted to approve a formal investigation into the utility to identify “the full extent of misclassifications of customers and how such misclassifications occurred, whether NV Energy misapplied its tariffs, and appropriate remedies to avoid future misclassifications and compensate overcharged customers.” It was approved unanimously by the commission.

“I think this is incredibly important, I agree with that scope and with General Counsel’s recommendations,” said PUC Chair Hayley Williamson about the investigation.

In May, Regulatory Operations Staff for the PUC filed a petition to open an investigation into NV Energy after it was revealed they overcharged 60,000 “misclassified residential customers” over $17 million between April 1, 2017, and April 1, 2024 — but it has happened as early as 2001.

According to the PUC filing, NV Energy overcharged 59,939 customers across 22,101 households $17,009,429.70 by classifying them as a single-family residence, rather than multifamily. It also found NV Energy undercharged 5,438 customers across 2,451 households $2,579,744.35 because they misclassified single-family residences as multifamily residences.

Refunds were only provided to a portion of the affected households and were capped at six months, resulting in less than $2 million reimbursed to customers. These discrepancies happened at “point of build and design,” when NV Energy would enter customers into their billing system.

“For over two decades, NV Energy’s uncorrected misclassifications of residential premises have caused substantial harm to tens of thousands of customers,” stated the PUC filing. “Upon discovering its mistakes, NV Energy decided not to disclose its misconduct to the Commission. Instead, NV Energy unilaterally implemented an improper remedy.”

According to the filing, NV Energy was improperly using Rule 2(K)(3), a rule that only applies to Southern Nevada, unlawfully in order to provide only partial refunds. The rule that capped refunds at six months only applies to customers who chose the wrong rate classification, not the power company, said the filing.

“NV Energy’s limited refunds triggered public outcry and even garnered the attention of the Legislature,” said the filing.

The legislative attention mentioned is bill AB 452, which would require utility companies to reimburse for certain overcharges with interest, revising PUC filings and “requiring the Public Utilities Commission of Nevada to open one or more investigatory dockets to examine certain matters relating to a potential cost-sharing adjustment mechanism.”

The bill was approved by Gov. Joe Lombardo on June 11 and will go into effect on July 1.

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