For more than 2 decades, Nevada’s largest power utility quietly overbilled 100,000+ customers by misclassifying their homes. The discovery sent shockwaves through state regulators and sparked demands for accountability. Now, facing relentless pressure from investigators, lawmakers, and furious residents, NV Energy has proposed a stunning reversal: full refunds totaling $65 million, including interest, dating back more than 20 years. The details start with how the overcharges stayed hidden.
Hidden Overcharges That Lasted 24 Years
For 24 years, thousands of Nevada residents had no idea they were being overcharged by NV Energy. Multifamily apartment dwellers were billed at single-family rates, paying hundreds more annually than they should have. The total damage: more than $65 million taken from 100,000+ families. When regulators uncovered the scope, the fallout was immediate. But what, exactly, caused the misbilling?
A Simple Error With Expensive Consequences
The mistake was remarkably simple yet devastatingly costly. In 2002, when NV Energy introduced its multifamily rate schedule, not all apartment complexes and townhomes were reclassified in its billing system. As new properties were added, many were categorized as single-family homes, triggering higher monthly charges. Some customers paid double the basic service charge. That kind of long-running error builds a bigger pattern.
The Numbers Point To Systemic Failure
Between 2001 and 2025, NV Energy overcharged approximately 80,000 to 100,000+ residential customers. Between 2017 and 2024 alone, roughly 60,000 customers lost more than $17 million to billing errors. Another 20,000 previously unidentified multifamily accounts were later found affected. NV Energy serves 1.4 million customers statewide. So how did individuals first learn what happened?
A Retiree’s Refund Shocked Her
Retired teacher Carolyn Fowler discovered she’d been overcharged for 11 years, with an estimated loss of $1,848. When NV Energy sent a “refund” letter, it credited just $73, covering only 1 billing cycle. At 74, living on a fixed income, that money mattered. “I’m living on a fixed income. That money means a lot to me,” she told regulators. How many others got the same surprise?
A Reporter Turned Complaints Into A Scandal
In early January, KTNV investigator Darcy Spears aired her first investigation into complaints about insufficient refunds. She interviewed Carlin Dinola, a retired couple overcharged $1,100 over 6 years but offered just $95. Spears’ reporting showed NV Energy had issued only 6 months of refunds using an outdated 1980 tariff rule. Public outrage built fast, and leadership felt it. Would the CEO survive it?
The CEO Resignation That Raised Eyebrows
Days after regulators revealed the scope of overcharging, NV Energy CEO Doug Cannon announced his resignation in May last year, citing “a new opportunity.” After more than a decade leading the utility, his departure signaled the crisis was serious. Berkshire Hathaway Energy, the parent company, moved quickly. Brandon Barkhuff, longtime general counsel, became CEO. His first big decisions would show the company’s true posture.
Refunds That Felt Like An Insult
When customers learned of overcharges, NV Energy’s initial refunds shocked families. Carolyn Fowler received $73 after 11 years, while Irwin Silver, in his home 27 years, got $45. A $1,848 overcharge netted $95. NV Energy relied on a 1980 rule limiting refunds to 6 months. PUC regulators said NV Energy knew it didn’t apply. If that was the opening move, what would advocates do?
Advocates Said Families Could Not Wait
“People are struggling to keep their lights on. People are struggling to make ends meet on a daily basis,” said Audrey Peral, Nevada Program Director for Chispa Nevada, according to the PUC workshop held January 21, 2026. She added, “Some folks may have been overcharged and were unaware of it for many years. It definitely affects their overall livelihood.” Protests and complaints grew, and NV Energy chose a hard line. Why?
NV Energy Tried To Cap Its Liability
On January 8, just 2 weeks before reversing course, NV Energy argued against full refunds. It said it should refund only back to June 2017, the last year with detailed billing records, and claimed earlier data was insufficient. NV Energy even questioned whether the Public Utilities Commission could force full reimbursement. The stance looked focused on limiting liability. Could regulators and lawmakers box them in?
Pressure Built From Every Direction
By mid-January, the Public Utilities Commission scheduled a public workshop for January 21, signaling formal investigation. Consumer protection attorneys challenged NV Energy’s data retention claims. Lawmakers prepared legislation mandating full refunds. Reporters kept digging, and protests formed outside NV Energy offices. Scrutiny from regulators, legislators, media, and residents intensified. Within 48 hours of the workshop, NV Energy’s legal team saw the risk. Would the new CEO pivot?
The New CEO Made A Big Promise
On January 20, CEO Brandon Barkhuff announced NV Energy would issue more than $63 million in full refunds dating back to 2002. In an exclusive interview with News 4, he apologized to roughly 45,000 identified affected customers. “We’re obviously very sorry for a mistake there, we own that,” he said. “We owe it to our customers to have accurate billing.” But what did the formal filing actually commit to?
“The Right Thing To Do,” He Said
“The path forward we proposed to resolve this issue is the right thing to do and is a great resolution for our customers. We are grateful for the hard work of the Regulatory Operations Staff of the Public Utilities Commission of Nevada for their help in developing a resolution that makes current customers whole again. My top priority when I assumed the role as CEO was to resolve this and put forth processes and procedures to ensure billing accuracy and rebuild transparency and trust with our customers,” Brandon Barkhuff said January 20, 2026. The money details mattered next.
How The $63 Million Was Built
NV Energy’s January 20 filing proposed $63 million in refunds with compounding interest. It had already distributed $5 million in initial refunds, leaving $57.36 million for active and inactive customers. NV Energy said the plan exceeded what Nevada law required. For June 2017 to 2025, it could calculate exact amounts using billing data. For pre-2017, it proposed estimates based on rate calculations. So how would payments reach people?
Bill Credits, Checks, And A Deadline Window
If approved, active customers would receive refunds as bill credits within 120 to 210 days of the commission’s formal order. Inactive customers would receive checks mailed to the last address on file. Uncashed checks would not revert to NV Energy, but become unclaimed property held by Nevada’s state treasury. Credits would appear automatically on bills. Regulators demanded clear timelines and transparency, and lawmakers also stepped in. What did the new law change?
A Lawmakers’ Warning Shot To Utilities
Governor Joe Lombardo signed Assembly Bill 452 into law last year, a bipartisan measure ensuring full refunds with interest for customers wrongly billed by any Nevada utility. It passed 35–7 in the Assembly and 20–0 in the Senate. AB452 also addressed fuel cost pass-throughs, requiring the PUCN to evaluate policies making NV Energy absorb some volatile fuel costs. The message was blunt: refunds were no longer optional. But could NV Energy prove fixes were real?
An Audit Was Ordered, Questions Stayed
NV Energy hired CBIZ, a third-party firm, to review and validate its billing correction work. The audit examined whether misclassifications were identified and corrected across the customer database. NV Energy said it added new processes and controls to prevent similar errors. However, the Attorney General’s Bureau of Consumer Protection said it had not reviewed CBIZ’s findings for accuracy. That left doubts about whether systems were truly fixed. Regulators had their own demands for safeguards.
Regulators Put The Failures In Writing
“NV Energy has been overcharging tens of thousands of misclassified residential customers since as early as 2001. Between April 1, 2017, and April 1, 2024, NV Energy’s residential rate misclassification resulted in approximately 60,000 customers being overcharged in excess of $17 million,” according to a Public Utilities Commission of Nevada filing dated May 13, 2025. Staff recommended periodic audits, indefinite retention of billing records, and controls in the “Customer to Meter” system launching in late 2028. Would refunds move quickly enough?
Approval Isn’t Final, And Time Matters
Public comment on the settlement proposal closes February 3. Then the PUCN must vote to approve, modify, or reject it. If approved, refunds would begin within 120 to 210 days. The Attorney General’s Bureau of Consumer Protection has not finalized its position on interest calculations. Some stakeholders question whether the settlement penalizes NV Energy or only returns money it should never have taken. With so much uncertainty, would customers ever trust the company again?
Customers Wondered What Else Was Hidden
Despite the settlement offer, distrust remains strong. “NV Energy said the PUC didn’t even have the authority to force them to pay full refunds. Did they learn something new that suddenly made them so willing to settle out of court? Are there more overcharges that we don’t know about?” asked Audrey Peral of Chispa Nevada at the PUC workshop January 21. Many fear the settlement does not address deeper accountability. If trust is the real issue, what comes after refunds?
A Refund, A Reckoning, And An Open Question
NV Energy’s $63 million refund represents accountability enforced by journalism, regulators, and public outrage. The company did not voluntarily disclose decades of overcharging and fought full refunds until pressure became overwhelming. Leadership changed, legislation passed, and investigations launched. Families may see money returned, yet some harm cannot be undone. Will Nevada’s regulatory framework and utility culture truly change, or will profits again come first when attention fades?
Source
NV Energy CEO Apologizes for Overcharges, Promises $63M in Refunds in Exclusive Interview. News 4, January 21, 2026
NV Energy Reverses Course on Refunds, Proposes to Repay Customers Dating Back to 2002. News 4, January 20, 2026
NV Energy Pitches $65.5M in Refunds to End Investigation into Overcharging Scandal. KTNV Channel 13 Las Vegas, January 21, 2026
NV Energy Proposes Settlement in Overcharge Case. The Nevada Independent, January 20, 2026
PUC Launching Investigation into NV Energy Overcharges Following Our Reporting. KTNV Channel 13 Las Vegas, June 24, 2025