LAS VEGAS (FOX5) —NV Energy has begun issuing more than $63 million in refunds, including interest, to customers who were affected by billing misclassification errors, the company announced Wednesday.
The refunds follow a formal resolution reached earlier this year with the Public Utilities Commission of Nevada and the Nevada Attorney General’s Bureau of Consumer Protection. Overall, 3.5 percent of residential households were impacted.
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What caused the error
NV Energy announced last year that a number of multifamily premises were assigned an incorrect rate classification when service was established, resulting in customers being overcharged. The company stated that the error affected how costs were distributed among customer groups but did not change the total amount NV Energy could recover from customers and did not result in financial gain for the company.
NV Energy engaged CBIZ, an independent third-party advisor, to review the company’s analysis, conclusions and processes used to identify and correct the classification issues. Based on statistically valid samples drawn from more than 1.9 million records, CBIZ concluded that the classification of single-family residential accounts in NV Energy’s billing system is reliable and performed “with a high degree of accuracy.”
The CBIZ report stated that NV Energy “has implemented a structured, multi-step process to identify, correct and mitigate the risk of misclassification of residential customer accounts” and that those processes are “logically designed and appropriately aligned with the nature and complexity of the issue.”
“Accurate billing is one of our most important responsibilities,” NV Energy President and CEO Brandon Barkhuff said. “While this affected a small percentage of our customer base, we take any error involving our customers seriously. We committed substantial resources to identifying affected customers, correcting the issue, and implementing safeguards to help prevent it from happening again.”
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How refunds will be issued
NV Energy chose to begin issuing refunds ahead of a September deadline set by the Public Utilities Commission of Nevada, while individual account reviews continue. Any additional issues identified will be corrected, the company says.
Eligible current customers will receive refund credits applied to their next bill. If a refund exceeds the amount owed, the remaining balance will be applied to future bills. Former customers will receive refund checks by mail at their last known address. All affected customers will receive a letter with information about their refund.
Customers with questions can contact NV Energy at (775) 834-4444 in northern Nevada or (702) 402-5555 in southern Nevada. The full independent review report is available at nvenergy.com/refunds.
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