NV Energy explains recent hike in energy costs

NV Energy says they have heard from many Nevadans concerned about higher energy costs and want to explain the reasons for the recent price increases. 

In an email sent to customers, NV Energy says they understand that the continued rising cost of utility bills is challenging for many of their customers. 

They mention that customers' bills are higher because natural gas prices in the west have increased nearly one-and-a-half times in the past 12 months.

This increase has driven higher energy bills across the country, including Nevada, even for those who have diligently decreased their energy usage.

The reasons for natural gas price increases include lower natural gas supplies across the western United States and higher demand due to below-average temperatures. Natural gas is a cleaner burning and reliable fuel.

For these reasons, NV Energy utilizes natural gas as a primary fuel source for generating electricity and to serve some of our natural gas customers in northern Nevada.

NV Energy wants customers to keep these important things in mind:

• NV Energy does not mark up the price we pay on the natural gas or energy we purchase: Customers pay the same price they pay for natural gas and energy purchases. Since the cost of natural gas and energy purchases is reflected in one's bill, they work hard to purchase the lowest-cost resources available for our customers.

• Their teams work hard to find the best price for fuel: NV Energy say they continuously work to purchase the lowest-cost natural gas available on the market, however when the market price for natural gas increases dramatically, like it has recently, NV Energy is required to purchase that higher cost natural gas, which results in our customers paying higher costs for electricity. 

• Expect cost adjustments quarterly. The rate you pay NV Energy for the natural gas or other energy we purchase is adjusted every January 1, April 1, July 1 and October 1.

• Will costs come down? Currently, they anticipate that energy rates may continue to increase in 2023 due to these higher natural gas and energy prices. However, we are seeing some indication that gas prices may be decreasing. As natural gas prices and energy prices decrease, your rates will begin to decrease as well.

• Small changes can reduce your bill. They work to equip customers with tools to control energy costs. Through their PowerShift programs, consider a free smart thermostat or schedule an in-home energy assessment to save additional energy and money. Visit nvenergy.com/powershift for details to learn about our energy efficiency products and services.

• We are here to help. For customers struggling with energy costs, NV Energy offer energy assistance and payment options, to help keep bills stable and to work payment options into your budget. Visit nvenergy.com/heretohelp to get started.

NV Energy says they continue to seek ways to provide their customers lower cost, reliable power. For example, NV Energy recently filed a plan with the Public Utilities Commission of Nevada that seeks to advance Nevada’s energy independence to reduce energy purchases.