LAS VEGAS (KTNV) — NV Energy is seeking a compromise with the Public Utilities Commission of Nevada amid an ongoing overcharge scandal first exposed by Channel 13.
The utility provider has faced public backlash and scrutiny from regulators after state investigators found more than 100,00 Nevadans were collectively overcharged nearly $65.5 million since at least 2002. The investigation found NV Energy had misclassified multi-family dwellings as single-family homes and charged some customers the wrong rate for their property type.
On Tuesday, NV Energy announced a proposal to issue more than $63 million in refunds, including interest, to customers affected by its systemic overcharging. Active customers dating back to 2002 would be eligible, according to an NV Energy spokesperson.
In exchange for issuing the refunds, NV Energy is asking that the PUC and Bureau of Consumer Protection stop their investigation into the company's billing practices, according to the filing reviewed by Channel 13.
The move marks an apparent reversal from the position the company took earlier this month in a filing reviewed by 13 chief investigator Darcy Spears. In that filing, NV Energy questioned the PUC's authority and threatened that further disciplinary action could delay or even partially erase refunds for mischarged customers.
At the time, the company also pushed back on regulators' proposal that NV Energy fully refund all overcharges, plus interest, and keep future billing records indefinitely to prevent a similar error.
Darcy Spears breaks down how NV Energy responded to the ongoing investigation:
NV Energy has maintained that its overcharging of certain customers didn't "unjustly enrich" the company because the error "impacted individual customers who ended up paying more while other customers paid less...and the overall revenue requirements for NV Energy remain balanced."
Tuesday's proposal comes as a result of collaboration with the PUCN to correct the misclassification errors, NV Energy's spokesperson wrote, adding that the company "has proactively put forth new processes and procedures, and hired CBIZ, a third-party, independent professional services firm, to review and validate the company's work."
NV Energy says it will share additional details about refunds on its website in the coming days. Customers who were wrongly billed can also reach out to the company directly with their questions or concerns, NV Energy's spokesperson added.
