The policy would help utilities cover the high costs of wildfires that impact communities and individuals.
NV Energy plans to create this fund by increasing customer rates and adding shareholder contributions, with the money invested to grow over time. NV Energy said this aims to ensure all funds are available to support customers and communities if a major wildfire happens.
The proposal is under review by the Public Utilities Commission of Nevada with a final decision expected by October 2025.
NV Energy seeks to raise $500 million for the policy proposal. It would add $2.40 per month to the bills of Northern Nevada customers. Southern Nevada residents would see a 50 cent increase to their monthly bills. The added charge would be for the next 10 years.
Northern Nevada customers face a higher risk of wildfires, the costs to cover them is greater, according to an NV energy press release.
The rate proposed for each region was determined using the same method previously approved by the PUCN for commercial wildfire insurance.
The company’s proposed policy is a vital move, said Ryan Bellows, NV Energy’s vice president of government and external relations.
“We’re seeing wildfires occurring at unusual times, like January in California," Bellows said. "It’s not just a seasonal risk anymore. Changing weather and climate conditions have made it a year-round challenge, which requires utilities to be proactive.
