LAS VEGAS (KTNV) — State consumer advocates are rejecting NV Energy's latest "compromise" offer in the overcharge scandal, saying the utility's terms unfairly leave some customers without refunds after more than 20 years of billing errors.
The monopoly utility's proposal would provide $63.2 million in refunds and bill credits to customers who were overcharged due to misclassifications that affected more than 100,000 Nevadans. However, the plan excludes anyone overcharged between April 2002 and May 2017 who is no longer active in NV Energy's system.
WATCH: Darcy Spears talks to NV Energy spokesperson about refunds for customers
Consumer advocate Angel DeFazio filed comments last Wednesday with the Public Utilities Commission, accusing NV Energy of doing "damage control" and saying they "couldn't care less about the ratepayers." She's pushing for a "hard-core written schedule" for refunds and interest payments.
"We'll begin issuing refunds to customers within 120 days once a decision is made, and we're hoping to have those out no later than 210 days once the decision's made," NV Energy spokesperson Meghin Delaney said after the PUC's Jan. 21 workshop. "We really want to make sure our teams have the time to get this right so that we get those refunds to customers."
But customers at that PUC workshop expressed deep distrust of the utility.
"We feel that there's something hidden or there may be an underlying issue that we are not aware of — just like we weren't aware that millions were being stolen from us," customer Justin Hopson said.
Audrey Peral with CHISPA Nevada echoed those concerns.
"I know as consumers we personally don't trust NV Energy to do what's right by customers, and we need the PUC to continue to hold them accountable," Peral said.
The Attorney General's Bureau of Consumer Protection also filed its response Wednesday, representing ratepayers in the case. In November, NV Energy estimated total overcharges at $65.5 million. The utility's compromise offer covers $63.2 million through a mix of direct refunds and customer bill credits.
So far, NV Energy has refunded $5 million without interest. The Bureau of Consumer Protection rejects the interest rate the utility wants to use for future payments.
"It isn't necessarily an interest rate that is tied to compensation for somebody who's been harmed or had funds taken from them that somebody was not otherwise entitled to," said Sam Taylor with the Bureau of Consumer Protection.
Both sides agree on several points: unclaimed refunds will go to the state's unclaimed property division, customers not yet identified or underpaid can file claims, and shareholders rather than ratepayers will cover all refund costs and interest.
However, the state wants additional protections. The Bureau of Consumer Protection is calling for annual audits paid for by shareholders to ensure misclassifications don't happen again. They want audit reports filed with the PUC, clearer bill language separating multi-family from single-family accounts, and strong consumer outreach so ratepayers know about available refunds and credits.
"We understand that this has had a real big impact on our customers who are affected by this multi-family misclassification," Delaney said.
According to the Bureau of Consumer Protection, the exclusion of inactive customers would allow NV Energy to keep about $16 million before fees and interest. The BCP wants those customers given time to claim refunds. If unclaimed, the BCP says the money should be allocated to benefit current ratepayers, go to Nevada nonprofits for low-income energy aid, or land in the state's unclaimed property account.
"The remedy can't be whatever's easy for Nevada Energy, whatever's easy for you," Leslie Vega with the Progressive Leadership Alliance of Nevada told commissioners at the recent workshop.
PUC regulatory staff, who began the state's investigation, say they're ready to wrap up the case "to ensure timely, guaranteed refunds and avoid the delays and risks of litigation." They urge commissioners to accept NV Energy's offer but only with conditions: don't close the investigation until commissioners see proof that all refunds have been issued and review a third-party report confirming the utility accurately identified all overcharged customers.
The Attorney General's office wants the PUC to schedule another workshop or status conference to keep commissioners informed of any new settlement developments.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
