New Legislation Seeks Fairer Power Billing Amid Fuel Price Spikes
As electricity costs continue to burden households across Nevada, a new legislative proposal is aiming to reshape the way NV Energy handles fuel-related expenses. Assembly Bill 452 (AB452), introduced by Assemblywoman Tracy Brown-May (D-Las Vegas), suggests that NV Energy should no longer pass 100% of fuel cost fluctuations on to customers. Instead, the utility would share in the burden when energy prices rise sharply due to external events such as extreme weather or global supply chain disruptions.
Under the proposed fuel cost sharing model, NV Energy would cover part of the cost when prices spike and, conversely, retain some savings when fuel is cheaper than expected. Advocates of the bill say this approach would protect consumers—particularly low-income and fixed-income households—from dramatic and unpredictable bill increases. “It’s about shifting the risk to where it can be better managed,” said Rebecca Wagner, a former state energy regulator and co-author of the bill.
Currently, NV Energy does not profit from fuel sales, but the full cost is passed on to customers. In 2023, natural gas prices—used to generate over half of Nevada’s electricity—rose by 70%, causing a surge in electricity bills. Many residents, like single mother Andi Kaufman from Southern Nevada, reported bills more than doubling despite efforts to reduce usage.
Opposition from NV Energy and Utility Workers
Despite its consumer-focused intent, AB452 has faced strong resistance from NV Energy. The utility’s Vice President of Regulatory Affairs, Janet Wells, argued that the existing system functions effectively and warned that the proposed changes could introduce procurement risks and market unpredictability. “This bill opens the door to unnecessary volatility and complexity,” she told legislators, suggesting that the current model does not require revision.
Union representatives from IBEW Local 1245, which represents NV Energy employees, also voiced opposition. They expressed concern that the bill could destabilize the company financially and create ripple effects for utility workers and broader infrastructure projects.
Still, it’s important to note that AB452 does not enforce immediate changes to NV Energy’s cost recovery structure. Instead, the bill directs the Public Utilities Commission of Nevada (PUCN) to assess the feasibility and potential impact of implementing a fuel cost sharing model. A report detailing findings and recommendations is expected by July 1, 2026.
Supporters of the bill, including the Nevada Conservation League and the Rocky Mountain Institute, say the measure would lay the groundwork for a smarter, fairer energy system. “Fuel cost volatility is best managed by the utility, not passed down to families trying to keep the lights on,” the Rocky Mountain Institute said in a statement.
Accountability and Oversight at the Core of Reform
In addition to fuel cost sharing, AB452 also addresses concerns about transparency and accountability. One key provision would close a loophole that currently limits how much NV Energy must reimburse customers when it overbills. In one case, a Las Vegas couple who were overcharged for six years received just six months’ worth of refunds—less than $100 of the $1,100 they were due.
The bill would ensure full reimbursement for all overcharges and strengthen regulatory oversight. It also seeks to alleviate the burden on regulators, who have struggled to keep pace with NV Energy’s frequent rate filings and energy plan amendments. “The regulatory process is overwhelmed,” said Christi Cabrera-Georgeson of the Nevada Conservation League. “Ratepayers deserve transparency.”
Having passed the Assembly Growth and Infrastructure Committee on April 11, AB452 now heads for further legislative review. If approved, the bill could signal a major shift in how utility regulation and consumer protection are handled in Nevada. “This is about ensuring predictability and fairness for everyday Nevadans,” said Brown-May. “When people push back on a bill, it often means it’s doing what it’s supposed to do.”
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