‘It’s theft’: Consumers express concern over NV Energy rate hike

Ratepayers expressed outrage Wednesday over NV Energy’s proposal to raise rates by 9 percent.

“NV Energy doesn’t need a rate hike. It needs a reality check,” said Jonathan Alvarado at Wednesday evening’s consumer session held by the Public Utilities Commission of Nevada at the Clark County Government Center. “This isn’t economics. It’s theft.”

NV Energy is seeking approval from the PUCN to raise rates to recover costs from investments made prior to last summer’s “record-breaking heatwave,” which would increase the utility’s revenue by $215.7 million, the utility said. If approved, the earliest the rate increase could take effect would be Oct. 1.

Additionally, the utility requested to increase its return on equity, or how much the company can profit, from 9.5 percent to 10.25 percent.

Even with the 9 percent increase, NV Energy said Southern Nevada customers should be paying less for energy by the end of 2025 than they did in 2024. This is due to a reduction in market energy purchases during peak hours from NV Energy, as the company continues to produce energy from their own generating plants.

The investments made include updating outdated technology and transmission infrastructure to ensure smooth operations, as well as the Silverhawk peakers project and the Reid Gardner battery storage project.

New policies

With the rate change, the utility has also proposed three new policies to the PUCN:

— Removing its fixed basic service charge for low-income customers at or below 150 percent of the federal poverty level, saving them up to $18.50 on monthly bills. The fixed basic service charge covers the cost of connecting the customer to the utility service.

— Instituting a residential and small commercial demand charge to encourage customers to spread energy usage of high-demand appliances, such as clothes dryers and pool pumps, throughout the day.

— A 15-minute solar credit proposal is for new rooftop customers to improve how they are billed by measuring energy usage and credits every 15 minutes rather than monthly to allow “for more accurate billing.

‘Bills are already too high’

The consumers session comes weeks after NV Energy faced public scrutiny for overcharging almost 60,000 households $17 million between April 1, 2017, and April 1, 2024 by misclassifying multifamily residences as a single-family residence. Additionally, it was found NV Energy undercharged 5,438 customers across 2,451 households $2,579,744.35 by misclassifying 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.

Vice President of Regulatory Tim Clausen addressed the misclassfications during Wednesday’s consumer session.

“As a company, our new leadership is committed to working with our regulators through a transparent process that provides a fair and balanced outcome for impacted customers,” said Clausen. “We continue to review customer accounts to correct any remaining miscoded properties and to implement controls and process improvements to help avoid this type of error happening in the future.”

Before the 6 p.m. consumer session, organizations Chispa Nevada, Make the Road Nevada, and Progressive Leadership Alliance of Nevada held a press conference to protest the proposed rate increase. Additionally, testimony was given from group members of Moms Clean Air Force and EcoMadres, the Nevada Conservation League, the Nevada Environmental Justice Coalition, Solar United Neighbors, Sierra Club Toiyabe Chapter and among others.

“Bills are already too high,” said a representative from Progressive Leadership Alliance of Nevada. “Families across our state are stretched to the limit with the rising cost of living, and now for the third time in a row, Nevada Energy wants to raise our rates again, but this time it’s even worse.”

Willie Scott, 73, spoke at the meeting with concern over large discrepancies in her bill. She said in June 2024 her bill was $107, but steadily increased until her September bill reached over $500. Even in the winter months she was still paying over $300.

“I keep my power at 81 so that way I don’t have to, but I still get these astronomical bills,” said Scott. “So, I would say you don’t need money.” 

Lauren Kaminsky is retired, on fixed income and has solar on her home — she is staunchly opposed to the 15-minute solar credit proposal, saying it “erodes net metering credits, reducing our ability to bank credits from winter and spring to offset summer usage.”

“This ridiculous idea brings to mind the old saying you could sell ice to an Eskimo,” said Kaminsky. “NV Energy is trying to find ways to sell sunlight to Nevadans.”

Another point of contention brought up by speakers was the demand charge, which many called “confusing.”

According to NV Energy, the demand charge will give customers more “control” over their bill and “puts less strain on the energy system at any one point in time.”

Marlon Anderson, an NV Energy customer of 17 years, said the demand charge “seems designed to confuse and punish regular people.”

“Bills are already hard to predict,” said Anderson. “Adding a new layer of complexity will make things worse, especially for senior citizens, low income families and people living paycheck to paycheck, raising our bills to boost shareholder profits while undercutting solar access is the definition of corporate greed.”

Contact Emerson Drewes at edrewes@reviewjournal.com. Follow @EmersonDrewes on X.