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Multiple Consumer Sessions Scheduled in June
In June, the PUCN held three consumer sessions to hear public comment on NV Energy's (NVE) general rate case (GRC) application for Southern Nevada. An electric utility's general rates include the cost of operating and maintaining the utility, as well as a reasonable rate of return on the company’s investments.
Nevada law requires investor-owned electric utilities to file a GRC application with the PUCN at least once every three years to allow the PUCN to take a broad, in-depth look at utilities revenues and expenses.
In its application, NVE proposes to increase annual revenues by $215.7 million, or 9.09 percent. NVE also proposes implementing a low-income residential assistance rider that would waive the basic service charge for qualifying customers, a daily demand charge rate component for all residential and small commercial rate classes, and modifications to the netting mechanism for new net energy metering systems. NVE is not proposing to increase the current Basic Service Charge of $18.50 for residential service.
If NVE's request is approved, a typical monthly single family residential bill is estimated to increase $14.91 or 9.96 percent, beginning Oct. 1, 2025. NVE also requests an increase in its authorized overall rate of return from the current rate of 7.43 percent to 7.88 percent. NVE additionally requests an increase in its return on equity from the current rate of 9.5 percent to 10.25 percent.
It is up to the utility to prove, through a formal evidentiary hearing process, that the requested increase in revenues results in just and reasonable rates.
The Formal Evidentiary Hearing Process
The filing of a GRC application begins a formal evidentiary hearing process that must, by Nevada law, be completed in 210 days. (See the timeline below for more information.) Prehearing conferences, discovery, hearings, and one or more consumer sessions are held as part of this process.
Consumer Comments & Bureau of Consumer Protection
Comments made during consumer sessions are valuable but are not evidence and cannot be considered by the PUCN when making a decision in a particular proceeding. However, public comments can provide valuable consumer insight to parties, such as the Nevada Attorney General's Bureau of Consumer Protection (BCP), that they can use in their testimony to submit into the evidentiary record. Only testimony that is made under oath, provided on the record, and subject to cross-examination by parties to the case can be considered in the PUCN's decision making.
The BCP is the voice for residential and small business ratepayers in all PUCN proceedings, including GRC hearings. The BCP is the consumer advocate and represents the collective interests of residential and business customers before the PUCN. The BCP’s role is to advocate on behalf of consumers for reliable utility service at the lowest reasonable cost.
Will the PUCN Approve the Rate Increase?
The PUCN's three commissioners (Commission) could decide, based on evidence presented in the record (e.g. the application, exhibits, and all sworn testimony subject to cross examination),
to approve the requested increase as proposed. Alternatively, the Commission may decrease rates, increase rates, leave rates unchanged, or otherwise modify a utility applicant's GRC proposal as necessary to ensure rates are just and reasonable.
The basic purpose of utility rate regulation, as established by the Nevada Legislature, is to balance the interests of the consumer and utility shareholders. Consumers generally seek reliable and safe utility service at the lowest possible rates. The utility shareholders are interested in earning a fair return on their investments.
The role of the PUCN in this process is to assure the interests of the consumer and utility are balanced.
During the formal evidentiary hearing process, the PUCN must establish the amount of money the utility needs to collect from customers through rates based on the reasonable and prudent costs for the utility to provide service. In addition to labor, materials, and taxes, the costs considered include the depreciation on plant used to produce and deliver the utility’s product, as well as interest costs for debt issued by the utility to finance construction of that plant.
Rates must also allow a reasonable profit on the equity invested by the utility’s shareholders. This information is primarily based on historical costs, not future projections. When added together, all these costs produce the revenue requirement that needs to be collected from customers through rates, which could be higher or lower than the amount requested by the utility in its application.
Public Hearings
The PUCN will hold hearings on the GRC beginning July 8-11, and continuing July 21-25. A live broadcast of the proceedings will be available through links found in the PUCN calendar.
Service Lists - Stay Informed
To stay informed of all notices and orders issued for this GRC, subscribe to a service list to follow Docket No. 25-02016. NVE's GRC application and other filings made in Docket 25-02016 can be viewed on the PUCN website or at the PUCN offices in Carson City and Las Vegas.
For help navigating the PUCN's docket database, call 775-684-6100 or 702-486-2600.
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