As customers, we depend on our utilities to provide reliable energy at a fair price. But NV Energy and Southwest Gas are failing Nevadans by prioritizing their profits over our well-being. Instead of working to lower energy costs, these companies continue to funnel billions into unnecessary fossil fuel projects, all while passing those costs onto us. It’s time to take a closer look at how NV Energy and Southwest Gas are profiting at the expense of hardworking Nevadans.
Utilities’ Profit-Driven Spending
Rising methane gas costs have driven some customers’ bills to double or even triple. Instead of providing relief, NV Energy and Southwest Gas are piling on more expenses by spending money on fossil fuel systems—costs customers are forced to pay back with interest.
Here’s how it works:
- Building and expanding gas systems is profitable for NV Energy and Southwest Gas because they can pass the costs of construction, maintenance, and upgrades directly onto customers through rate increases. Whenever NV Energy builds a new gas-burning power plant or Southwest Gas expands gas pipelines, our energy bills go up because customers are responsible for paying off these costs for decades.
- Monopoly utilities are financially incentivized to spend more on these projects because the more they spend, the more they earn in profits. This creates a dynamic where NV Energy and Southwest Gas are more likely to pursue costly utility-owned gas projects rather than cleaner, more affordable energy solutions.
Think of it like a mortgage. Like homeowners who gradually pay off a home loan with interest, utility customers pay for energy infrastructure, but with a few major differences:
- We have no control over the purchase price.
- We can’t shop around for a better interest rate that fits within our budgets.
When it comes to energy projects, utilities push to build more because they can charge us more, gaming the system to earn higher returns for their investors.
More Methane Gas is Not a Solution
Investments made with ratepayers’ dollars should prioritize what benefits customers the most: clean energy projects, energy-efficiency initiatives, and programs that reduce overall energy demand. These solutions not only lower and stabilize our energy bills but also protect our health and environment. Yet, NV Energy and Southwest Gas continue to push for more spending on methane gas projects, a short-sighted approach that pollutes our air and drains our wallets.
Take Southwest Gas’s 2019 $30 million pipeline expansion to Mesquite as an example. An overwhelming 98.5% of the project’s cost was passed on to Southern Nevada customers, with only 1.5% borne by Mesquite residents. Southwest Gas gained more customers while the rest of us gained higher gas bills. With affordable, cleaner technologies like heat pumps and induction cooktops available with purchase rebates and tax incentives, gas pipeline projects must face more scrutiny to ensure they genuinely serve the public interest — not the utility’s bottom line.
NV Energy, despite its claims of promoting clean energy and CEO Doug Cannon’s recognition that gas is volatile compared to renewable energy, continues to spend heavily on costly methane gas plants. Nearly 60% of NV Energy’s power generation comes from methane gas. Since 2023, the company has secured approval for three new methane gas plants. The Silverhawk peaker plant, which only runs during times of high demand; the Valmy coal-to-gas conversion project; and the very recent 400-megawatt North Valmy expansion, which comes with a staggering $575 million price tag. Once operating, these three projects will increase the percentage of power that comes from this polluting, out-of-state gas and will cost Nevadans over $1.1 billion.
NV Energy can choose to lock us into decades of methane gas dependence, or they can choose affordable, Nevada-made clean energy solutions that protect our health, stabilize bills, and safeguard our environment for future generations. With proven clean energy solutions already boosting Nevada’s workforce and economy, it’s time for NV Energy to prioritize long-term investments in renewable resources like solar and geothermal energy.
Overcompensation & Reckless Spending
While Nevada residents struggle with soaring energy bills, NV Energy and Southwest Gas thrive. Southwest Gas’s president and CEO Karen Haller was compensated over $7.1 million in 2023—a $2.7 million jump from her $4.4 million paycheck in 2022. NV Energy’s parent company, Berkshire Hathaway, paid CEO Gregory Abel over $20 million!
These monopoly utilities have also been caught recklessly spending money and attempting to pass the costs onto customers. In 2023, NV Energy tried to saddle ratepayers with the bill for expensive hockey promotions and game tickets, branded swag, and promotional advertising. A few years earlier, Southwest Gas was caught billing customers for massages, zip-lining adventures, spousal travel, fancy dinners, luxury car rides, and mani-pedis for executives and board members. These monopolies are also members of trade organizations like Edison Electric Institute and the American Gas Association, which actively work against customer interests and spread misinformation. Southwest Gas was even trying to recoup $1.1 million in trade association dues from customers. Customers should not have to foot the bill for our utilities’ million-dollar club memberships.
This reckless spending has real consequences for Nevada customers, especially low-income families and those on fixed incomes. Every proposal to raise energy costs adds to the financial burden, making it harder for Nevadans to make ends meet.
What Can We Do?
NV Energy and Southwest Gas’s profit-driven spending and reckless investments in methane gas systems are burdening Nevadans with skyrocketing energy bills and decades of fossil fuel dependence. These utilities are gaming the system, profiting from expensive and dirty gas plants, and sticking customers with luxury expenses.
Customers also shouldn’t be forced to pay for political influence, executive perks, or promotional spending—costs that serve the utilities, not the public. These expenses should come out of corporate profits, not the pockets of hardworking Nevadans. Nevada’s policymakers must protect ratepayers by preventing the misuse of customer funds and ensuring our dollars are spent responsibly on the core purpose of delivering energy services. This commonsense reform will help stabilize bills and put us back in control of our energy future.
Utility Watch NV is fighting to ensure every dollar our utilities spend benefits customers. Join us in calling for affordable, clean energy solutions that put Nevadans first. Sign our petition today.
