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 100,000 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.
WATCH| Darcy Spears reports the latest on NV Energy's proposal to the PUCN
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."
After learning about the Tuesday filing, Channel 13 sent the following questions to NV Energy, in an effort to get you more answers.
On Tuesday afternoon, NV Energy sent us the following responses, which don't directly address why the utility made the new filing and elaborate on the same statements we have previously reported.
Audrey Peral, Nevada Program Director for Chispa, a grassroots organization supporting impacted customers, said families are making impossible choices between basic necessities and keeping their electricity on.
"People are struggling to keep their lights on. People are struggling to make ends meet on a daily basis," Peral said. "Some folks may have been overcharged and were unaware of it for many years. It definitely affects their overall livelihood."
The overcharging has forced customers into difficult decisions about their household budgets, Peral explained.
"People are struggling and making really difficult decisions whether they're gonna pay for their child's appointment or something that they really desperately need or keep the lights on, and something like power and energy," Peral said.
NV Energy says it will share additional details about possible 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.
The PUC is still hosting a public workshop Wednesday morning to discuss the investigation.
Wednesday's workshop will take place in Carson City at 10 a.m., but will be videoconferenced in Hearing Room A in the PUCN building in Las Vegas.
You can also watch the workshop via livestream on the PUC website here.
