The Public Utilities Commission of Nevada is considering a $1 million fine against NV Energy for trying to recover repair costs in its annual revenue adjustment filing.
The commission found that NV Energy had attempted to recover repair costs via ratepayers for two third-party excavator incidents in 2022, when the excavators hit multiple power lines.
The commission had ordered NV Energy not to pass repair costs onto ratepayers during its general rate case, to which NV Energy agreed. However, the commission found the utility “clearly failed, neglected or refused” to obey its order, leading the regulatory body to recommend a fine of $1 million for the violation.
“Staff is extremely concerned about (NV Energy’s) ability to properly vet and screen costs for inclusion in rate cases, especially those specifically ordered excluded by the Commission,” said the filing from May.
The general rate case the commission is referring to is the same one that increased the utility’s annual revenue by $118 million, bringing it to $2.42 billion per year. The GRC increased rates for Nevadans starting in October, as well as the hotly contested demand charge.
Excavator incidents
The first excavator incident occurred Nov. 29, 2022, when NV Energy contracted third-party company Tab Construction for a dig near 7095 S. Durango Drive. During the dig, excavators hit three power lines owned by the utility, resulting in $50,000 worth of damage.
On Dec. 14, 2022, NV Energy contracted Las Vegas Paving for a dig near the intersection of North Rainbow Boulevard and West Cheyenne Avenue. While using a backhoe, the paving company hit two NV Energy-owned power lines, resulting in another $50,000 of damage.
Both incidents violated the Nevada One Call Law, which requires utilities and homeowners to call 811 before a dig to avoid unintentionally hitting underground utility lines while working on digging projects.
For these incidents, NV Energy was ordered to pay $35,000 — $25,000 to the State General Fund and $10,000 to the Nevada Regional Common Ground Alliance — to “enhance training and public outreach” regarding the Nevada One Call Law.
NV Energy fights back
According to the PUCN, the utility could face a fine of more than $5 million for attempting to pass costs onto ratepayers, but that amount was adjusted to $1 million.
NV Energy continues to fight back on the fine, saying it is “unreasonable,” according to filings from November and December. The utility said the repair costs were “inadvertently and temporarily included” in its GRC.
Additionally, they said the repair costs would have had an “inconsequential financial impact” on the company and ratepayers.
The commission has continued to double down on its recommended fine, saying it is a “repeated” violation and the utility continues to use “the same employees and the same internal processes for these types of issues,” further saying it “cannot be disregarded.”
This is not the first time a $1 million fine has been recommended against the utility.
According to the PUCN, this is the fifth time NV Energy has attempted to recoup costs from ratepayers since 2023 when the commission has ordered otherwise. For those incidents, the utility was ordered to pay fines of $20,000, $75,000 and $50,000, and was recommended to pay $1.2 million, though that amount was eventually adjusted to $218,000.
Contact Emerson Drewes at edrewes@reviewjournal.com. Follow @EmersonDrewes on X.
