LAS VEGAS (KTNV) — NV Energy is challenging state investigators and consumer watchdogs in the ongoing investigation into the company's overcharge scandal, which was first exposed a year ago in a "Darcy, What's the Deal?" investigation.
The utility's response represents the latest development in efforts to push the Public Utilities Commission to hold the power company accountable for billing errors that affected more than 100,000 Nevadans.
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In December, the PUC's regulatory staff said no further investigation is needed before commissioners decide what remedy to impose. Now, NV Energy is questioning the commission's authority and threatening that further action could delay and even partially erase refunds.
The controversy began when Carlin Dinola filed a complaint a year ago.
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"I was robbed. That's what it feels like," Dinola said.
State investigators found more than 100,000 Nevadans were collectively overcharged nearly $65.5 million since 2002 because NV Energy charged them the wrong rate for their property type by misclassifying multi-family dwellings as single-family homes.
PUC staff and the Attorney General's Bureau of Consumer Protection say NV Energy must fully refund all overcharges plus interest and keep billing records indefinitely so it never happens again.
NV Energy, in its newly filed reply, says it "deeply regrets the errors" and is "committed to providing meaningful compensation," but rejects punitive measures. The utility argues it was not "unjustly enriched," claiming the PUC's rate-setting process "ensured no windfall" because while some customers paid more, others paid less, so it essentially balanced out.
Staff and BCP want refunds dating back to 2002. NV Energy says it will voluntarily issue refunds going back eight years to June 2017, and might consider ways to compensate earlier customers — but insists state rules only obligate six months' worth of refunds if the commission extends its authority.
NV Energy also challenges the commission's legal power in this investigative proceeding, claiming no refunds can be ordered unless there's a formal "contested case" — a court process NV Energy warns would be "lengthy, resource-intensive, and delay compensation."
Regarding the BCP wanting annual independent audits of all new billing records at NV Energy's expense, NV Energy pushes back again, saying those costs should be recoverable through rates paid by customers. The company accuses the BCP of being more interested in punishment than lasting policy reform.
Consumer advocates like Garrity Pruitt of Utility Watch Nevada have said any pushback from the power company is unacceptable.
"We deserve full refunds, clear answers, and assurances this won't happen again," Pruitt said.
The commission will weigh both sides during a public workshop Jan. 21 at 10 a.m. It will be video conferenced to Hearing Room A at the Public Utilities Commission of Nevada, located at 9075 West Diablo Drive, Suite 250. Members of the public may participate in person or access the workshop via the Commission's live stream link on its website. A period will be provided for public comments (which may be limited to three minutes per person at the discretion of the presiding officer) and discussion of those comments.
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