LAS VEGAS (KTNV) — State investigators with the Nevada Public Utilities Commission (PUC) say NV Energy tried to break a promise not to charge customers for repairs caused by the utility's own negligence, marking the second time this year that PUC staff has caught the monopoly utility trying to pass inappropriate charges to ratepayers.
The PUC found that NV Energy violated Nevada's "One Call" law twice in late 2022, then attempted to include repair costs in a rate hike after promising not to charge customers for the damage.
Nevada's One Call law requires homeowners and contractors to call 811 before digging to protect against accidentally hitting underground gas, water or electric lines. The call must be made at least two business days before digging to have underground utilities located and marked with paint or flags as a free service.
State records show NV Energy's line locating contractor mis-marked areas in two incidents. One near Durango Drive and Arby Avenue resulted in more than $50,000 in utility property damage. Another near Rainbow Boulevard and Cheyenne Avenue caused an hours-long power outage impacting more than 2,500 customers.
To settle the violations, NV Energy agreed to pay a $35,000 fine and promised "not to seek recovery of any costs associated with the damage from ratepayers" and to "remove such costs from its next general rate case."
However, documents filed in advance of Thursday's PUC meeting show that in February, NV Energy included costs related to one of the repairs in its rate case, attempting to recover those costs from customers.
"It felt like a betrayal," said Camalot Todd of the Nevada Conservation League.
Todd said the PUC's job is to ensure NV Energy follows rules and doesn't exploit Nevadans.
NV Energy claimed the repair costs were inadvertently included due to a typographical error and were later removed. PUC investigators said NV Energy's request would have increased rates on customers if staff hadn't caught it.
"It is ridiculous that a utility monopoly from a billion-dollar company is shrugging off this mistake — this, I would say, negligence — as an unintentional mistake," Todd said.
This marks the second time NV Energy has improperly included repair costs in a rate hike case. As a result, investigators want the utility to pay a $1 million fine.
Pastor DeWayne McCoy of Faith in Action spoke in August at a Nevada Conservation League press conference about NV Energy's pending rate hike.
"If we don't stop Nevada Power right now, when is it going to stop? When is the problem going to be fixed?" McCoy said.
"Enough is enough! When will we see change in our community where our people will feel like they are a part of the community and not just a piece of the pie that the companies are trying to take a slice out of?" McCoy continued.
Kristee Watson of the Nevada Conservation League said energy bills should only be for energy.
"The only thing that we should be billed for is to be able to connect and to turn the lights on when we need them," Watson said.
In July, 13 Investigates exposed how NV Energy's parent company Berkshire Hathaway tried to pass corporate expenses and executive perks to consumers for things like staff retreats, limousine rides, luxury hotel stays and liquor. The state's Bureau of Consumer Protection identified more than $16 million in what they called "imprudent" expenses that the PUC later cut from the general rate case.
WATCH | BCP: NV Energy tried to pass on costs of luxury hotel stays, food, alcohol on to ratepayers
The PUC is also continuing its overcharge investigation. PUC staff found that about 80,000 Nevadans were overcharged more than $17 million going back as far as 2001 because NV Energy charged customers the wrong rate for their property type.
WATCH | PUC launches investigation into NV Energy overcharges following 13 Investigates story
The PUC will have updates on the overcharge investigation and set a schedule for a hearing on the proposed $1 million fine at its meeting Thursday.
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