For over two years, Nevada’s families and businesses have faced skyrocketing NV Energy and Southwest Gas bills, with some seeing their costs double or even triple. This financial strain is especially harsh on those struggling to make ends meet.
Difficult Choices and Unfair Burdens
Many families have faced difficult choices between paying their utility bills and covering necessities such as food, healthcare, and housing. A mother in Southern Nevada shared that her daughter dropped out of cheer and dance during her senior year of high school last year, losing interest in college because she needed a part-time job to help pay the family’s bills. The young woman was worried about whether or not her mom would make ends meet. Decisions like these are not uncommon for underserved communities and those on low or fixed incomes, who already face disproportionately high energy burdens.
Small businesses are also feeling the squeeze. The increase in energy prices cuts into already tight budgets. One small bakery and coffee shop owner in Las Vegas reported that her NV Energy bill doubled, and all the money coming in went straight to her bills. Margins like this make it difficult for local enterprises to sustain operations and grow. This financial strain threatens not only the viability of these businesses but also the local economy, potentially leading to job losses and shuttered storefronts.
Unpredictable Methane Gas Prices = Higher Utility Bills
The driving force behind these skyrocketing utility bills is the volatile cost of methane (natural) gas, the main fuel source for NV Energy and the only fuel source for Southwest Gas. NV Energy burns methane gas to produce electricity. In fact, nearly 60% of the power NV Energy generates comes from this fossil fuel. Southwest Gas pipes it into our homes and businesses for air and water heating. When the price of methane gas goes up, so do our bills.
The price of this gas can quickly skyrocket because it is subject to world events. The war in Ukraine, winter storms like the one that hit Texas in 2021, and high demand for air conditioning can all lead to higher-than-predictable fuel costs. But it’s no skin off NV Energy or Southwest Gas’s back. Imagine if you could drive any car you wanted and someone else paid for the gasoline. You’d be less inclined to drive a fuel-efficient car or monitor your driving. Likewise, because NV Energy and Southwest Gas pass 100% of the methane gas costs directly onto customers, they have little incentive to manage those expenses or invest in affordable, energy-efficient solutions. This leaves Nevada families and small businesses struggling to cope with unpredictable and escalating bills while the utilities remain insulated from the financial pressures their customers face.
Weather Extremes Raise Bills and Vulnerabilities
High bills are not just a financial issue. Every year, heat kills more people than hurricanes, floods, tornadoes, or the cold combined. In Clark County alone, nearly 500 deaths attributed to heat were reported in 2024. Living in poorly weatherized and un-air-conditioned homes worsens health problems, with half of all heat deaths occurring at home, particularly among the elderly and those with pre-existing conditions. Yet, keeping homes at safe and comfortable temperatures is a necessity that many cannot afford.
The problem isn’t going away as our climate continues to heat up. Las Vegas experienced record-breaking heat throughout the summer. Temperatures soared over 110 degrees for multiple days, even reaching 120 degrees. And it’s not only Las Vegas – Reno is the fastest-warming city in the entire United States.
While heat is a major concern in Nevada, families also suffer during the winter. Over the past two years, colder-than-usual winters have led to record-high gas bills for Southwest Gas customers, driven by volatile gas prices and constant rate increases.
Utilities Rake in the Dough
While Nevadans are forced to tighten their belts to cope with soaring energy costs, NV Energy and Southwest Gas bring in a lot of money. Just months after Southwest Gas reported record third-quarter revenues of $775 million in 2023, the company was approved for another rate hike earlier this year – its fourth one since 2018! As customers struggle to make ends meet, the company’s overall revenue reached $5.4 billion last year.
Meanwhile, NV Energy reported $4.52 billion in operating revenue for 2023, up from $3.82 billion in 2022. Because that is not enough for NV Energy’s leadership, the company sought to increase the basic service charge customers in Northern Nevada owe monthly from $16.50 to $45.30, which would have tripled the minimum monthly payment made before customers even flip on one switch! Thankfully, public utility regulators sided with customers and largely rejected the hike by only allowing a $2 increase.
Customers Pay the Price
As monopoly utility incomes soar, Nevadans are left paying the price, overcharged and overwhelmed by relentless spikes in our energy bills. We deserve affordable, reliable, and clean energy.
Do you have a story about how high energy bills impacted you or your business? Please email us at action@utilitywatchnv.org.
