(The Center Square) – Mandatory demand-based energy charges by Nevada’s primary energy company, NV Energy, have been further delayed until Jan. 1 after a unanimous vote Tuesday by the state’s utilities commission.
The demand-based energy charges, which would be the first imposed by an investor-owned utility company on residential customers in the U.S., were set to begin Wednesday. The delay followed the company’s ongoing $63 million in refund payments to overcharged customers.
“We only knew about this because we happened upon a Facebook post,” said resident Shirley Seastrand at the Tuesday Nevada Public Utilities Commission vote to delay the demand charge. “We shouldn’t be penalized for living our lives and running our air conditioning – especially in the Nevada heat – or at any other time for that matter.”
Seastrand, who also noted that her son relied on a ventilator for muscular dystrophy, echoed the concerns of several residents at the PUC hearing. Every public comment from Tuesday spoke in opposition to the demand charges.
NV Energy electricity is currently priced at a flat rate per kilowatt hour in Nevada, with rates changing every few months. The company already has an optional demand charge payment method, but the new system would make demand charges mandatory for customers, which make up nearly half of the state population.
Demand charges are based on a customer’s 15-minute peak energy usage for the day, then multiplied by four to make an hourly rate for the day. The new system offers lower per-kilowatt hour prices for electricity, but will cost more for customers who use high energy during peak hours.
NV Energy cited a need to better inform the public about the demand charge system as one of the primary reasons for its delay, initially until October, and now Jan. 1. The three PUC commissioners agreed and added that misinformation had caused undue concerns about the demand charges.
NV Energy said in a March 26 draft order that it would provide customers side-by-side comparisons of their energy bills for the months of April and July, with and without demand-based charges, as part of the effort to improve education about the program.
“Recent revelations regarding $62.8 million in questionable utility maneuvers have confirmed that our most vulnerable citizens are being exploited by a black box billing system,” said resident Marianne Blackburn at the hearing. “This shift toward new demand charges represents a fundamental breakdown in consumer transparency and safety.”
In September 2025, NV Energy agreed to pay 42,856 customers a combined $62.8 million in refunds for overcharges that go back to 2002. The overcharges were because the company charged some multi-family residences – such as apartments — at single-family home energy rates, despite receiving a lower energy rate.
“Some of the personnel that are involved in implementing the daily demand charge are also the same personnel that are also responsible for processing customer refunds that were previously ordered by this commission,” said Commissioner Randy Brown in the hearing. “The utility and this commission are both prioritizing customer refunds over the implementation of the daily demand charge.”
