For more than 20 years, Nevada’s largest power utility quietly overbilled more than 100,000 customers, misclassifying multifamily homes as single-family residences. The errors added up to $65 million in overcharges, sparking outrage among residents and regulators alike.
“We’re obviously very sorry for a mistake there, we own that,” NV Energy CEO Brandon Barkhuff said January 20, 2026. Facing mounting pressure, the company now proposes full refunds. Here’s what’s happening behind this long-running utility scandal.
How Overcharges Went Undetected
For 24 years, thousands of Nevada families unknowingly paid hundreds more annually than they should have. Multifamily apartment dwellers were often billed at higher single-family rates. The fallout became apparent when regulators uncovered that more than 100,000 accounts were affected, with damages totaling $65 million.
The misbilling stemmed from a 2002 error. NV Energy introduced a multifamily rate schedule, but many apartment complexes and townhomes were not reclassified. Some customers even paid double the basic service charge. This simple oversight created decades of financial strain, leaving regulators and residents to question how such mistakes persisted unnoticed.
Early Discoveries Spark Outrage
Retired teacher Carolyn Fowler learned she was overcharged $1,848 over 11 years but initially received only $73. “I’m living on a fixed income. That money means a lot to me,” she told regulators. Her story reflected the experiences of countless others, highlighting the human cost behind the numbers.
Journalist Darcy Spears amplified these complaints in January 2026, revealing that NV Energy applied an outdated 1980 tariff rule to limit refunds to just six months. Reporting showed a systemic failure to address longstanding overcharges. Public frustration grew rapidly, prompting regulators and lawmakers to take action, leaving the company’s leadership under intense scrutiny.
Leadership Shake-Up and Corporate Response
NV Energy CEO Doug Cannon resigned in May 2025, days after regulators revealed the overbilling. Brandon Barkhuff, longtime general counsel, stepped in as CEO. His early decisions would define the company’s response.
Initial refunds angered customers further. Many, like Fowler, received only a fraction of what was owed. NV Energy cited the 1980 tariff rule, despite regulators noting it was inapplicable. Advocates warned that struggling families could not wait. Audrey Peral of Chispa Nevada said, “Some folks may have been overcharged and were unaware of it for many years. It definitely affects their overall livelihood.” Pressure for full restitution mounted.
Full Refunds and Legal Pressure
On January 20, 2026, CEO Barkhuff announced NV Energy would issue over $63 million in refunds dating back to 2002. “We owe it to our customers to have accurate billing,” he said in an exclusive interview. The plan included both bill credits for active customers and mailed checks for inactive ones. Estimates covered pre-2017 accounts, while exact calculations applied to later years.
Legislation reinforced this move. Assembly Bill 452, signed by Governor Joe Lombardo, mandated full refunds with interest for customers wrongly billed by Nevada utilities. The law passed overwhelmingly, signaling regulators and lawmakers were determined to prevent NV Energy from limiting its liability. Transparency and accountability became central demands.
Audits and Remaining Doubts
NV Energy hired CBIZ to audit its billing corrections and implement new controls, but the Attorney General’s Bureau of Consumer Protection had yet to validate the findings. Regulators also required periodic audits and indefinite retention of billing records, along with new controls in the “Customer to Meter” system launching in 2028.
Despite the settlement, distrust remains. “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 Peral. Even with refunds issued, customers wonder whether the company’s culture and Nevada’s regulatory framework have truly changed.
A Reckoning and Its Implications
NV Energy’s $63 million refund represents accountability enforced by journalism, regulators, and public pressure. The company did not voluntarily disclose decades of overcharging and initially resisted full restitution. Leadership turnover, legislation, and audits now mark a turning point.
While families may recover lost money, some harm cannot be undone. The case raises broader questions about utility oversight, corporate responsibility, and public trust. Whether Nevada’s regulatory safeguards will prevent future abuses or profits will again take priority remains uncertain, leaving residents and lawmakers watching closely.
Sources:
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