Monday, June 9, 2025
On February 14, 2025, NV Energy (NVE), a subsidiary of Berkshire Hathaway, submitted a General Rate Case (GRC) to the Nevada Public Utilities Commission (PUC), under Docket Number 25-02016.
In this GRC, NVE seized every opportunity to propose increases in the rates charged to consumers, asserting that there would be an 'offset' due to the reduction of another fee.
The state of Nevada has been enduring unusually high summer temperatures, rendering air-conditioning not merely a luxury, but rather a necessity for health and safety. The rising costs of rent, food, prescription medications, and energy are placing an untenable burden on residents. Individuals on fixed incomes, as well as those who are unemployed or disabled, are faced with the distressing dilemma of choosing between sustenance and air conditioning.
Despite existing regulations in Nevada that govern the termination of energy services due to non-payment, which stipulate that such terminations cannot occur during periods of extreme heat (defined as outside temperatures reaching 105o F or higher), the situation remains precarious. [1]
Once temperatures fall below this threshold, the outstanding charges become due, thereby imposing additional financial stress on ratepayers. There is now an alarming prospect that services may be terminated when temperatures are just below 105o F.
Certain health conditions—including migraines, Multiple Sclerosis, autoimmune diseases (such as Lupus and Rheumatoid Arthritis), Rosacea, Asthma, and Chronic Obstructive Pulmonary Disease (COPD)—are significantly exacerbated by elevated temperatures, particularly affecting the elderly and disabled populations. [2]
The recent proposed increases to the GRC rate are placing vulnerable demographics at a heightened risk for heat-related illnesses, such as heatstroke. It is quite easy for individuals to fall into the so-called 'donut hole' when it comes to accessing assistance.
Within the GRC, NVE is advocating for the waiving of the Basic Service Charge for low-income ratepayers (those at or below 150% of the poverty level), with the intention of redistributing these charges among other ratepayers. [3]
NVE seeks permission to implement a Peak Demand Rate billing program, an initiative that has yet to be adopted by any utility across the nation that impacts all ratepayers of a utility. Under this program, the highest energy usage recorded within a 15-minute interval would be multiplied by four to determine the hourly consumption, which would then be billed at a rate of $0.19/kwh. This feature is only accessible for customers with Smart Meters. [3]
In 2014, NVE and the PUC established an 'opt-out' plan for those who opposed Smart Meters and preferred to retain their Legacy Analog Meters. This option was accompanied by an additional monthly fee of $8.82. In the current GRC, NVE is now proposing to raise this fee to $29.60 per month, citing the inability to monitor and impose penalties for excessive energy usage. [3]
NVE has acknowledged that this program is designed to compel ratepayers to modify their energy consumption in accordance with the utility's preferences.
NVE is requesting the PUC's approval for the establishment of a $500 million self-insurance policy, intended to enhance NVE's wildfire liability insurance coverage, raising the total coverage to approximately $1 billion. [4]
NVE has also approached the Nevada Legislature to obtain approval for the 'GreenLink' project, which aims to connect the state. The initial estimated cost for this project ranged from $2.484 billion to $4.239 billion, a figure anticipated to rise due to current tariff assessments. [4]
Construction cannot commence until NVE secures a permit from the PUC. In accordance with Nevada's Utility Environmental Protection Act, NVE has yet to submit the necessary Application to the PUC, which is required for filing. They have, however, filed an application with the US BLM but have yet to receive the Final Environmental Impact Statement (FEIS) or the Notice to Proceed (NTP). [4]
Additionally, in this GRC, NVE is requesting reimbursement for the following items:
-Costs associated with Berkshire Hathaway's Board of Directors expenses [5, 6]
-Reimbursement of the incentive paid to Doug Cannon [5]
-An increase in annual revenues by $215.7 million, or 9.09% [5]
- An increase in the overall authorized rate of return from the current rate of 7.43% to 7.88% [5]
- An increase on the return on equity from the current rate of 9.5% to 10.25% [5]
REFERENCES
[1] NAC 704.3934 Postponement of termination during forecasted period of extreme heat. (NRS 703.025, 704.1835, 704.210) 2. (a)
[2] https://www.cedars-sinai.org/blog/summer-health-risks.html
[3] https://national-toxic-encephalopathy-foundation.org/wp-content/uploads/2025/06/Sam-Prest-100.pdf
[4] https://national-toxic-encephalopathy-foundation.org/wp-content/uploads/2025/06/Adam-Danise.pdf
[5] https://national-toxic-encephalopathy-foundation.org/wp-content/uploads/2025/06/DOCKETS-25-02016-TESTIMONY-6-6-2025-AIR-UEL-NPC.pdf
[6] https://national-toxic-encephalopathy-foundation.org/wp-content/uploads/2025/06/Daniel-Saunders.pdf