Bill seeks to ensure full refunds when utilities overcharge customers
Last week state utility regulators disclosed that over several years NV Energy overcharged more than 80,000 customers over $17 million, with only 20,000 receiving partial six-month refunds that amount to a fraction of what customers overpaid. (Photo: Ronda Churchill/Nevada Current))
Lawmakers are looking to pass a law that would require utilities to fully refund energy customers who are overcharged, closing loopholes that have allowed utilities to withhold full refunds from wronged customers.
Assembly Bill 452, sponsored by Democratic Assemblymember Tracy Brown-May, would ensure customers receive full refunds with interest for overcharges, address high utility bills by shifting some cost volatility back to utilities, and extending regulatory timelines for rate case reviews.
The bill comes after years of customer complaints detailing partial refunds by NV Energy which is only required to reimburse customers up to six months prior to the data the error is discovered in certain cases.
Last week the bill became more relevant than ever after state utility regulators disclosed that over several years NV Energy overcharged more than 80,000 customers over $17 million, with only 20,000 receiving partial six-month refunds that amount to a fraction of what customers overpaid.
Following the disclosure, NV Energy's president and CEO stepped down amid a call from regulatory staff at the Nevada Public Utilities Commission for an investigation into whether NV Energy used an inapplicable rule to cap refunds at six months.
Several advocacy groups said the disclosure that the statewide electric utility overcharged tens of thousands of customers for years only highlighted the need for the bill's passage.
'It is outrageous that NV Energy would harm so many customers like this and not report it or fully repay them,' said Audrey Peral, program director of Chispa Nevada in a statement. 'Nevada lawmakers must pass Assembly Bill 452 quickly to protect utility customers from these kinds of abuses. Hard-working families can't keep paying the price for NV Energy's wrongdoing.'
Under the bill, 'Notwithstanding any other provision of law, if the Commission determines that a utility has charged a customer more than any applicable rate or tariff allows, the utility shall refund to the customer, with interest, the full amount of any overcharge.'
The bill passed the Assembly on a 35-7 vote in April, with some bipartisan support. Under legislative deadlines, the bill would need to pass the Senate Friday.
The bill is also supported by the Nevada Bureau of Consumer Protection, which said in a letter to lawmakers the bill would ensure 'a full and equitable refund to ratepayers who are unfairly overcharged.'
However, the bill has been strongly opposed by NV Energy, a subsidiary of Berkshire Hathaway Energy.
Ryan Bellows, the vice president of government and external relations at NV energy, told lawmakers last week that the statewide electric utility complies with Nevada Public Utilities Commission approved rules on customer refunds.
'The rule is that it's a six month payment back to the customer. We are currently communicating with the commission on this issue, on how to address and improve and correct this rule going forward,' Bellows said, adding that any changes to the rule is best left to utility regulators.
The Nevada Public Utilities Commission disputes NV Energy's interpretation of the rules on customer refunds, telling lawmakers the issue is currently being examined by the Commission's consumer complaint resolution division.
Garrett Weir, general counsel for the Nevada Public Utilities Commission, said the bill and 'the proposed change to statute would certainly clarify' the rules on customer refunds.
NV Energy also opposes other aspects of the bill, especially language that would direct utility regulators to potentially adopt a fuel cost-sharing structure so ratepayers are not left covering the full cost of fuel price spikes caused by global events or weather disasters.
'It's our position that the adoption of fuel cost sharing would lead to increased costs for customers,' Bellows said.
The bill would ask utility regulators to investigate how to best navigate energy price spikes and to study if fuel cost sharing is in the best interest of Nevadans and the utility. State energy regulators would submit a report on their investigation to the Interim Committee on Growth and Infrastructure by July 1, 2026.
Nevada law prohibits utilities from profiting from fuel and purchased power costs, however in Nevada every dollar NV Energy spends to purchase fuel is passed fully through to customers. Fuel accounts for about one-third of NV Energy customer costs.
Bellows argued revisions to price spike policies are unnecessary because NV Energy does not mark up purchases and the Public Utilities Commission has the authority to deny cost recovery for any purchases deemed imprudent.
'I would tell you that the purpose of this bill is really to prevent us from utilizing natural gas to serve our customers and to build out Nevada's energy infrastructure for economic development,' Bellows said.
NV Energy is heavily reliant on out-of-state natural gas sources, which have seen sporadic but sharp price fluctuations in recent years. In 2022, the price it paid for natural gas — which accounts for more than half of Nevada's power supply — spiked by 70% in January 2023, according to NV Energy.
Several unions and trades groups echoed concerns about the bill's potential negative impact on economic development and job opportunities, including the International Brotherhood of Electrical Workers, Building and Construction Trades Council of Northern Nevada, and the National Electrical Contractors Association.
Nevada residents who spoke in favor of the bill's language to investigate a potential cost-sharing structure highlighted the financial strain on families and seniors due to rising energy costs.
'I hear from families and seniors who are stretched to their breaking point by high energy bills. They're cutting back on life saving air conditioning, skipping meals, rationing medicine, and they're still falling behind. For those living on low income and fixed income, the cycle of high bills is relentless and dangerous,' said Mary House, co-founder of a local faith-based nonprofit community organization called Caring, Helping & Restoring Lives.
Conservation groups and energy advocates emphasized the bill's potential to reduce high utility bills, promote clean energy, and ensure consumer protection.
The bill is supported by Advanced Energy United, Western Resource Advocates, the Nevada Environmental Justice Coalition, Southwest Energy Efficiency Project, and the Sierra Club.
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