FAQs Concerning Utility Rates
Does the government have any control over the amount of my utility bill?
The Public Utilities Commission of Nevada is the state government agency that was established to regulate the operation of some of the largest public utilities in Nevada, which includes Nevada Power in Southern Nevada, Sierra Pacific Power in Northern Nevada (collectively doing business as "NV Energy") and Southwest Gas. This does not include utilities like the Southern Nevada Water Authority or Truckee Meadows Water Authority. The Public Utilities Commission of Nevada's responsibility includes ensuring utilities provide safe and reliable service at just and reasonable rates.
What does the Public Utilities Commission of Nevada do?
The Public Utilities Commission of Nevada is a Nevada regulatory agency that:
(1) ensures investor-owned utilities operating in Nevada comply with laws enacted by the Nevada Legislature;
(2) evaluates the costs to supply natural gas or electricity contained in utility applications to determine what costs are to be passed on to the customers in the form of their utility bills; and
(3) approves or denies those applications.
The Public Utility Commission of Nevada's basic regulatory duties, powers, and scope of work are defined by the Legislature and codified in Nevada Revised Statutes Chapters 703 and 704. The law defines the Public Utilities Commission of Nevada's duties, which include the following:
(1) The fair and impartial regulation of public utilities;
(2) To provide for the safe, economic, efficient, prudent and reliable operation and service of public utilities; and
(3) To balance the interests of customers and shareholders of public utilities by providing public utilities with the opportunity to earn a fair return on their investments while providing customers with just and reasonable rates.
What is the Bureau of Consumer Protection and what does it do?
The Bureau of Consumer Protection is a Bureau within the Nevada Attorney General's Office. The executive head of the Bureau of Consumer Protection is the Consumer Advocate. In addition to other areas of law, the Bureau of Consumer Protection represents the interests of customers and the public interest in utility matters before the Public Utilities Commission and other regulatory bodies. This usually occurs when the Public Utilities Commission of Nevada is investigating and ultimately deciding on rates the utilities are seeking to pass on to customers. These utilities are referred to as regulated monopolies, meaning there is generally only one utility in Nevada from which you can purchase utility services, such as natural gas or electricity. The utility's ability to lawfully operate as a monopoly is the reason rates are regulated by the government through the Public Utilities Commission of Nevada.
What is a consumer session?
Consumer sessions are public meetings that people can attend and voice their opinions, concerns, thoughts and public comments about rates and other topics to the Public Utilities Commission of Nevada. Anyone is welcome to attend a consumer session and share their opinions, concerns, thoughts, and public comments about a utility or the utility ratemaking process.
I want to speak at the next consumer session. What do I need to do?
Anyone has the right to voice their opinions, concerns, thoughts, and public statements at a consumer session. Please note speakers will likely be limited to a specific time frame in which they may make a public comment. The time frame, which is generally two to five-minutes, is set by the Public Utilities Commission of Nevada.
When a consumer session is announced, the notice of the public meeting is listed on the Public Utilities Commission of Nevada's Scheduled Consumer Sessions webpage. The notice will contain the date, time, and location of the hearing, and sometimes a call-in number for individuals to participate telephonically if they do not want to attend the meeting in person.
Are all local utility rates set by the Public Utilities Commission of Nevada?
The Public Utilities Commission of Nevada regulates the services and rates only of public utilities that are owned by investors. A list of all Public Utilities Commission of Nevada regulated companies and service providers can be found here.
How can I file a complaint against a utility?
Customers may file a complaint against a utility that is regulated by the Public Utilities Commission by submitting the complaint to the Public Utilities Commission of Nevada. Complaints may be filed telephonically or online.
Calls to the Public Utilities Commission of Nevada's Consumer Complaint Resolution Division are accepted from Monday through Friday at 8 a.m. to 5 p.m. at the following numbers:
- Northern Nevada: (775) 684-6100
- Southern Nevada: (702) 486-2600
Complaints may also be filed online here.
In addition to complaints, individuals may also submit questions to the Public Utilities Commission of Nevada via an online form here.
For more information on resolving disputes or filing a complaint against a utility, please refer to the Public Utilities Commission of Nevada's Consumer Complaint webpage.
Generally, how do utility rates get set?
The process of how utility rates get set is fairly complicated. This is a very general overview describing two key components of that process.
First, the actual costs of services, such as natural gas or electricity, are ultimately passed on to the customer at the rate the utility pays for them. In other words, the utilities do not make a profit on these specific costs. These are known as "pass through" costs because they simply pass through to the customer.
The second component is general rates, which require a determination from the Public Utilities Commission of Nevada. This process begins with the utility filing an Integrated Resource Plan with the Public Utilities Commission of Nevada. The Integrated Resource Plan contains the utility's plan on what it wants to build or spend money on to meet demand for providing its services (services such as providing natural gas or electricity). The Public Utilities Commission of Nevada will then consider the application during a hearing. Following the Public Utilities Commission of Nevada's approval or denial of the plan or aspects of it, the utility will go and spend money on the approved projects (projects, buildings, land, etc.) based on the approved plan.
However, utilities are businesses that seek to make a profit. After the utilities spend the money for projects, buildings, land, etc., they will then file an application with the Public Utilities Commission of Nevada for a General Rate Case. In this application, the utilities are asking the Public Utilities Commission of Nevada for permission to change the rates that were set in the most recent rate case based upon the actual amount of money the utility spent for projects, buildings, land, etc.
Under Nevada law, the utility is also allowed to earn a reasonable rate of return for providing services to its customers, the ratepayers, on the money it spends on these projects, buildings, land, etc. In the General Rate Case, the Public Utilities Commission of Nevada determines not only how much of the money the utility spent can be recovered - or charged - to customers, but also how much profit the utility can make on the utility's investments. The Public Utilities Commission of Nevada must set rates that allow the utility to earn a reasonable rate of return on equity invested by the company's shareholders.
The Public Utilities Commission of Nevada will hold a hearing on the General Rate Case. Similar to the Integrated Resource Plan, prior to and during the General Rate Case hearing, many interested parties will discuss and debate the utility's request in its application. The Bureau of Consumer Protection represents utility customers in the General Rate Cases. In this role, the Bureau of Consumer Protection presents evidence and arguments at these rate hearings to advocate for setting utility rates that are as low as reasonably possible. Ultimately, the Commissioners consider this evidence along with evidence presented by other parties at the hearing in order to set rates. The Commission is statutorily required to set rates that are just and reasonable.
At the conclusion of the General Rate Case hearing, the Public Utilities Commission of Nevada must make a decision on the final cost utilities can charge customers and how much the utility can earn.
For more information on this technical process, please visit the Public Utilities Commission of Nevada.
Can I watch the Integrated Resource Plan hearing or the General Rate Case hearing where plans are presented or rates get set?
Yes, the public may attend any hearing in person or watch live proceedings online through the Public Utilities Commission of Nevada website. To see the calendar of events, listen live to agendas, hearings, and other matters, visit the Public Utilities Commission of Nevada's Commission Calendar here.
Utilities are businesses, how do they make money?
Contrary to what you may suspect, utilities do not make a profit from the actual commodity they provide to customers, such as natural gas or electricity. For example, a natural gas utility does not earn a profit from the natural gas you use in your home. The cost of the natural gas, meaning the cost that the utility pays for the natural gas it sends to your home, is the same amount that you pay. There is no profit on that for the company.
However, utilities are businesses that seek to make a profit. A utility makes a profit based on what they maintain, build, or purchase, and the services they provide. The Public Utilities Commission of Nevada determines what percentage of profit the utility can charge customers on the amount of money they spend on things of value, such as assets, projects, buildings, land, etc. The profit percentage, or monetary amount, that the Public Utilities Commission of Nevada approves gets divided up among all customers and ends up in your bill. This amount is the profit the utilities earn as a business to provide you with services, such as natural gas or electricity. In simple terms, the more the utility builds or buys, the more profit the utility can make if those projects are approved by the Public Utilities Commission of Nevada.
Why have my natural gas and electric bills been increasing in recent months?
There are a number of reasons for the recent increase in natural gas bills. One of the reasons natural gas bills have increased and remain high in the beginning of 2024 is because in December 2022 and January 2023, the price of natural gas in the western United States increased tenfold. The actual cost the utility pays for natural gas it provides to customers gets passed on to customers, however it takes time for the cost that the utility paid for the natural gas to be passed down to the customers in their bills. This is the reason the amount the utility paid for the natural gas in December 2022 and January 2023 is included in customers' bills in late 2023 and early 2024.
In addition to being used in some homes for heat and hot water, natural gas is also used by the electric utility to create electricity. Nevada's electric utilities rely on natural gas for a substantial amount of the electrical energy they supply to their customers. Therefore, as the cost of natural gas increases, there is a corresponding increase to the cost of producing electricity. Remember, the cost the utility paid for the natural gas gets passed on to the customers.
How does the price of natural gas increase end up causing my energy bill to go up?
Electric and natural gas utilities in Nevada include the cost of the natural gas in the utility bills they send to their customers. The cost, or amount the utility paid for the natural gas, is listed in the utility bill as part of the Base Tariff Energy Rate. The higher the dollar amount the utility paid for the natural gas, the higher the Base Tariff Energy Rate will be in customer bills. It is important to know that there is a delay between the time the utility pays for the natural gas and the time that the utility includes the cost of that natural gas in a customer's utility bill. This delay is due to the time it takes the utility to ensure it paid for natural gas, prepare all necessary paperwork, and then provide the bill to its customers.
What might cause my utility bill to increase?
There are several reasons why your utility bills may increase. One reason is the cost of natural gas. In addition to being used in some homes for heat and hot water, natural gas is also used by the electric utility to create electricity. If the cost of natural gas increases, it costs the natural gas and electric utilities more to purchase it, and therefore that increased cost gets passed on to you, the customer.
Another reason to note for increases in utility bills is the utility's spending. The more money the utility spends on things of value, such as assets, projects, buildings, land, etc., the more money the utility can ask the Public Utilities Commission of Nevada to approve to be collected from customers in a General Rate Case. When a utility gets permission to collect from the customers, the utility includes those costs in the customer's utility bill.
What can I do to decrease my utility bills?
There are practical ways to reduce your utility bills. One way is to ensure your home is as energy efficient as possible, by doing things such as installing energy efficient lightbulbs or appliances, turning off certain appliances, lights, or lowering your thermostat when you are not home. For additional information, please refer to the Public Utilities Commission of Nevada's webpage titled "Save Money."
I can't afford my utility bill. How can I get help?
Gas and electric companies must establish programs for customers who are struggling to pay their utility bills. These programs are based on financial hardship and can help customers by reducing the amount of the bill or equalizing the bill so that the bill is more consistent and manageable.
Additionally, some municipalities and non-profit organizations may also have programs unique to your circumstance or geographical location that assist with utility bills.
Please reach out to the utility directly and inquire about low-income and financial hardship programs. A few examples include the Low-Income Energy Assistance Program for natural gas and electricity customers or Link-Up America for telephone installation on tribal land.
For programs unique to your circumstance or geographical location, please reach out to the Nevada Department of Health and Human Services or call 211.
For additional information on energy cost relief, please visit the Public Utilities Commission of Nevada.