PUC of Nevada opens investigation into NV Energy customer misclassifications after consumer complaints

The Public Utilities Commission of Nevada voted unanimously to open an investigation into alleged customer misclassifications and overcharging by Nevada Power Company and Sierra Pacific Power Company, both doing business as NV Energy, following public comments from consumers who said they were billed at incorrect rates.

The commission’s action, moved by Chair Haley Williamson and seconded on the record, accepts General Counsel’s recommendation to grant staff’s petition and to initiate an investigation. Chair Haley Williamson read the recommendation into the record, saying the scope should include “identifying the full extent of misclassifications of customers and how such misclassifications occurred, whether NV Energy misapplied its tariffs and appropriate remedies to avoid future misclassifications and compensate overcharged customers.”

Why it matters: Commissioners said the probe is intended to determine whether hundreds or thousands of customers were placed in the wrong billing class and whether refunds or other remedies are required. Public commenters told the commission they believe the problem has persisted for years and that refunds offered so far appear incomplete.

During two public-comment periods, three consumers described individual billing problems. Erwin Silver said he has lived in his house for nearly 27 years and received a $45 credit that he believes is far too small. “How they came up with $45… I wanna find out how long they were overcharging me and how much money they owe me,” Silver said on the record. Tom Dudas told the commission he believes the problem affects tens of thousands of customers and referenced past enforcement and large settlements involving companies in the same corporate family. Carolyn Fowler said she found she had been misclassified for about 11 years and estimated a refund of about $1,848 based on the company’s initial notice.

Commissioners highlighted that General Counsel’s petition will be processed as an investigation docket and that the commission will update the docket caption to reflect the inquiry into NV Energy rate misclassifications. Commissioner Cordova and Commissioner Brown both said they intend to support the investigation on the record.

The vote: The commission voted in favor of General Counsel’s recommendation and to open the investigation (voice vote recorded as “Aye” by the commissioners present). No commissioner recorded a dissent on the tape.

The commission did not set a public timetable in the meeting for completion of the investigation or for how individual customers will be notified about potential refunds. Chair Williamson said the investigation will seek to determine how misclassifications occurred and the appropriate remedies.

The commission also noted that the issues raised by the public comments overlap with a separate, related agenda item in which staff recommended initiating the investigation; the motion adopted that staff recommendation and directed staff to proceed.