NV Energy Overcharges 80,000 Nevadans $17M, Caps Refunds at Six Months

In a revelation that underscores the perils of unchecked monopolies, NV Energy, Nevada’s primary electric utility, has admitted to overcharging more than 80,000 customers by at least $17 million over a span of 23 years. The overbilling, attributed to misclassifying residential properties, led to inflated charges for tens of thousands of Nevadans. Despite the magnitude of the error, NV Energy has only issued partial refunds, limited to six months, totaling less than $2 million.

The utility’s actions have drawn sharp criticism from consumer advocacy groups and prompted the Public Utilities Commission of Nevada (PUCN) to consider a formal investigation. The misclassifications, dating back to 2001, involved categorizing multi-family residences as single-family homes, resulting in higher rates for affected customers. Compounding the issue, NV Energy applied a Southern Nevada-specific rule, Rule 2(K)(3), to cap refunds at six months statewide—a move regulators deem inapplicable and improper.

Notably, NV Energy did not proactively disclose the overcharges. Instead, the issue came to light through customer complaints about insufficient refunds. Further scrutiny revealed that between 2017 and 2024, approximately 60,000 customers were overcharged over $17 million, while an additional 20,000 accounts were identified later, with the total overcharge amount undisclosed .

The fallout extends beyond financial discrepancies. Between April 2017 and April 2024, NV Energy disconnected service to over 3,000 customers who had been overcharged, raising concerns about the broader impact of the utility’s billing practices on vulnerable populations.

In response to the controversy, Assembly Bill 452 has been introduced, aiming to mandate full refunds with interest for overcharged customers and enhance regulatory oversight. However, NV Energy is actively lobbying against the bill, arguing that existing systems suffice and that the proposed changes could lead to “risky and costly” outcomes .

This situation serves as a stark reminder of the need for transparency and accountability in utility operations. As NV Energy navigates the regulatory response, Nevadans await measures that will ensure fair treatment and prevent future overbilling.

Source: Las Vegas Review-Journal