A new legislative effort in Nevada aims to address the increasing burden of electricity costs on households by proposing a significant shift in how the state’s largest utility, NV Energy, manages fuel expenses. Assembly Bill 452 (AB452), sponsored by Assemblywoman Tracy Brown-May (D-Las Vegas), suggests that NV Energy should absorb a portion of fuel costs, particularly during periods of price surges, rather than passing the entirety of these costs directly to its customers.
The concept of fuel cost sharing entails that when global events cause fuel prices to escalate sharply—as seen during the 2021 Texas winter storm or pandemic-induced supply chain disruptions—NV Energy would be responsible for covering a percentage of the resulting increased costs. Conversely, if energy is procured at prices lower than anticipated, the utility could retain a portion of the savings.
Advocates for the bill contend that this model would mitigate unpredictable and often substantial rate hikes for consumers, many of whom operate on fixed incomes. “It’s about transferring the risk to an entity better positioned to manage it,” stated Rebecca Wagner, a former Nevada energy regulator and co-author of AB452.
Currently, while NV Energy does not profit directly from fuel sales, it transmits all associated expenses to its customer base. In 2023, a 70% surge in natural gas prices—the fuel source for over half of Nevada’s electricity generation—led to significant increases in utility bills statewide. Individuals like Andi Kaufman, a single parent in Southern Nevada, experienced a dramatic rise in her monthly bill from $91 to $245, despite implementing energy conservation measures.
NV Energy, however, has expressed strong opposition to AB452. Janet Wells, the utility’s VP of Regulatory Affairs, argued that the existing system is effective and that the proposed legislation could encourage risky and costly fuel procurement practices. “This bill introduces unnecessary instability and complexity,” Wells told lawmakers. “There is no need to try and fix something that is functioning properly.” Union representatives from IBEW Local 1245, representing NV Energy employees, echoed these concerns, fearing potential negative impacts on the company’s financial stability.
It is crucial to understand that AB452 does not mandate immediate changes. Instead, it directs the Public Utilities Commission of Nevada (PUCN) to conduct a comprehensive study on the viability and potential advantages of a fuel cost sharing framework. The findings of this study are to be presented to the Legislature by July 1, 2026.
Supporters of the bill, including the Nevada Conservation League and the Rocky Mountain Institute, believe that this investigation could pave the way for more intelligent and resilient utility policies that safeguard consumers and incentivize investments in clean energy technologies. “The volatility of fuel costs is best handled by the utility, not by families struggling to pay their bills,” asserted the Rocky Mountain Institute.
Beyond fuel cost sharing, the bill also aims to rectify a contentious loophole concerning overbilling. Under current regulations, if NV Energy overcharges customers, it is only obligated to reimburse a fraction of the overbilled amount. A case in point is a Las Vegas couple who were overcharged for six years but only received compensation for six months—less than $100 of the $1,100 they were owed. AB452 would mandate full reimbursement in such instances and enhance regulatory oversight by providing regulators with more time to scrutinize the utility’s frequent filings. NV Energy has submitted multiple general rate cases and revised its long-term energy plans numerous times in recent years, placing a significant strain on regulatory resources and creating confusion for consumers. “The regulatory process is overwhelmed,” stated Christi Cabrera-Georgeson of the Nevada Conservation League. “Ratepayers deserve transparency and thorough review.”
AB452 successfully passed out of the Assembly Growth and Infrastructure Committee on April 11 and is now awaiting further consideration by the legislature. If enacted, it could represent a pivotal moment in Nevada’s approach to utility regulation and ensuring affordable energy for its residents.
“This legislation is about establishing predictability and fairness for everyday Nevadans,” emphasized Brown-May. “When there is significant pushback on a bill, it often indicates that it is indeed addressing the intended issues.”