LAS VEGAS (KTNV) — When utilities like Southwest Gas and NV Energy ask the state to approve rate hikes, they have to justify asking customers to pay more.
However, some of the expenses those utilities have tried to slip into recent rate hike cases are nothing short of a slap in the face to customers.
Golf memberships and massages. Golden Knights hockey games and bartenders. First class travel and spa treatments. All things that Energy and Policy Institute's newly released report shows Southwest Gas wanted Nevada customers to pay for.
"These types of expenses erode public trust in regulators because of the way that companies bury them in their rate case filings and it takes a lot of work to dig them up," said Stephanie Chase, EPI Research and Communications Manager.
Energy and Policy Institute — a clean energy consumer watchdog group — did that work, combing through thousands of public records to spotlight inappropriate expenses utilities across the country are trying to pass on to consumers.
You can read the full report below.
When it comes to Southwest Gas...
"They wanted to charge customers for employee massages, and catering and entertainment at Vegas Golden Knights games, and manicures and pedicures, and spousal travel for board members," Chase said.
Supporting documents linked to the report break some of that down.
In its 2018 rate case, Southwest Gas included costs for weekly and biweekly massages from the European Massage Therapy School, as well as a golf course membership, a bartender, two apartments it rents in Las Vegas, and hotel rooms at Vdara.
In 2020, Southwest Gas sought to charge Nevada customers for catering and entertainment at T-Mobile Arena as well as expenses paid to a ziplining company. They also tried to slip in charges for a board member's manicure/pedicure, an in-room movie and minibar tab at the Four Seasons, luxury vehicle charges, and first class flights, including expenses for a senior executive's spouse to travel to board meetings.
"That says they just don't care about the consumer! They care about their profits and making their stockholders make a profit," said Henderson homeowner Wayne Bernath in February for a story we did about skyrocketing gas bills.
We've been hearing from customers across the valley all year that costs are too high.
"They're just coming up with anything they can say to try to justify but it's not justifiable. These rate hikes? Not that much!" said Bernath.
WATCH: 'People just can't afford it': Customers fuming over Southwest Gas rate hikes
EPI's report shows an auditor with the Nevada Public Utilities Commission went through a painstaking process to catch many of the inappropriate costs Southwest Gas tried to slip into its rate hike requests.
The PUC staffer recommended the commission disallow some of the expenses but others were approved.
"What message is that sending to the ratepayer," I questioned.
"I think it's sending the message that the utility is looking out for their shareholders and not for customer interests," Chase replied.
In response to EPI's report, Southwest Gas sent us the following statement.
"The rates Southwest Gas charges its customers include only those costs approved by its regulators, and do not include expenses such as community giving and volunteer programs, political contributions, lobbying, sports sponsorships, and corporate events."
NV Energy had two questionable expenses mentioned in EPI's report.
Nevada law prohibits utilities from charging ratepayers for promotional and political advertising. However, the report says NV Energy's bill inserts included corporate image building or goodwill advertising—costs it generally tried to recover from the customer.
We also found a second incident involving NV Energy.
"NV Energy provided (cell phone) power banks to all of the attendees in swag bags at this lithium conference that Gov. Lombardo held earlier in the year and the power banks were branded with the wildfire safety information and website for the company, but that's not at all the topic of the lithium conference," Chase said.
NV Energy sent us the following statement.
"NV Energy is committed to providing safe, reliable and affordable energy for customers. NV Energy seeks recovery of allowable costs, as regulated by the Public Utilities Commission of Nevada. Any cost that would be paid by customers through rates is carefully vetted and considered by the Public Utilities Commission of Nevada before those costs appear in a bill.
"Some other things it's important to note about NV Energy and costs:"It might also be worth noting for you that the credibility of the Energy and Policy Institute has been called into question before. According to the nonprofit Campaign for Accountability, "EPI is a dark money group: it does not appear to have nonprofit status, it is not registered with any relevant secretary of state, and no one admits to funding it."
- Certain expenses are paid for solely by the company - and are not paid for by customers. That includes NV Energy's political and charitable donations and branding campaigns.
- Customers are paying less for their energy now than they were are this time last year and NV Energy is continuing to seek ways to keep costs low.
- This year, overall effective rates have returned to levels similar to 2022 and below levels from 2012.
EPI tells 13 Investigates they're working with Nevada lawmakers on utility accountability and transparency in legislation and hope to have something come to a vote during the 2025 session.
