Regulators Seek $1M Fine Against NV Energy Over Cost Recovery Dispute

Nevada regulators are once again examining the conduct of NV Energy, as the Public Utilities Commission of Nevada considers imposing a $1 million penalty over allegations that the utility improperly sought to recover repair costs from customers.

According to filings from the PUC, the dispute centers on incidents that occurred in 2022, when NV Energy allegedly failed to comply with Nevada’s One Call Law. The law requires individuals and businesses to contact 811 before excavating to prevent damage to underground infrastructure. Regulators say the failure to follow this requirement resulted in approximately $50,000 in damage at two intersections in Las Vegas.

The PUC further alleges that NV Energy later attempted to include the cost of those repairs in its general rate case, effectively passing the expense on to customers. Regulators argue that this action violates established rules prohibiting utilities from recovering costs associated with their own operational errors.

In its filing, the PUC notes that this matter represents the fifth order to show cause issued against NV Energy since 2023, pointing to what regulators describe as a pattern of similar conduct. NV Energy does not dispute that it sought to recover the costs but contends that a $1 million fine would be disproportionate. The company has proposed a reduced penalty of $75,000.

The case unfolds amid broader legal challenges involving the PUC. The Nevada Attorney General has questioned the legality of a recently approved daily demand charge, and the advocacy group Vote Solar has filed a separate lawsuit challenging aspects of the commission’s decisions. Representatives from Vote Solar argue that the regulatory process has historically favored utilities and dispute claims that solar customers shift costs to non-solar ratepayers.

Any changes related to the contested demand charge are scheduled to take effect in April 2026, unless altered by a district court ruling. The PUC’s proceedings regarding the proposed fine against NV Energy remain ongoing.

Original reporting credited to local Nevada media.