NV Energy Proposes Major Rate Hike Amid Rising Operating Costs

LAS VEGAS, Nevada — NV Energy has filed a request with the Public Utilities Commission of Nevada (PUCN) seeking a $215.7 million increase in revenue, potentially raising residential electricity rates by 9% for Southern Nevada in 2025. The utility also aims to enhance shareholder returns and implement new billing practices for solar customers.

The proposal indicates that the increase in revenue is necessary to recover substantial investments made prior to last summer’s record heatwave. According to a press release, these expenditures were crucial for ensuring long-term affordability and reliability of electric services. ‘These upgrades were essential in meeting customer energy demands during last summer’s record-breaking heatwave,’ said NV Energy in the release.

Key projects that contributed to the investment include the Silverhawk natural gas facility, designed to produce electricity during high-demand periods, and the Reid Gardner battery storage project. However, the cost of the Greenlink transmission project has surged from an initial estimate of $2.5 billion to over $4.2 billion, potentially escalating further due to looming tariffs.

NV Energy President and CEO Doug Cannon emphasized the company’s commitment to minimizing impacts on customers while ensuring safety and reliability during extreme heat. ‘The investments we are now seeking recovery for helped make sure we were able to meet the energy needs of every customer during those record summer days and throughout the year,’ Cannon stated.

In addition to the proposed rate increase, NV Energy seeks to eliminate the $18.50 monthly basic service charge for low-income customers, which would benefit approximately 154,827 households in Southern Nevada. This change, expected to cost around $9.5 million annually for the utility, would go into effect in April 2026 if approved.

The proposed changes would also include a residential and small commercial demand charge aimed at reducing peak energy demands. With this new structure, customers may incur additional costs if they use high-demand appliances simultaneously. NV Energy argues this approach will help balance energy consumption and lessen the burden on the overall grid.

NV Energy’s plan also targets modifications in net metering for new rooftop solar installations, shifting to a 15-minute interval for energy credits instead of monthly calculations. This shift is estimated to potentially increase bills for solar customers by around $11 per month, sparking anticipated opposition from solar companies.

According to Jeffrey Bohrman, director of Regulatory Pricing and Economic Analysis for NV Energy, the adjustments aim to align pricing structures with actual energy use. ‘This gives customers more control of their energy usage and puts less strain on the energy system at any one point in time,’ he explained.

The proposed rate changes and policies must undergo a public review process before any adjustments can take effect, with the earliest implementation date projected for October 1, 2025. NV Energy remains hopeful for approval from the PUCN soon.