By Amy Alonzo / The Nevada Independent
Nevada’s wildfire season is arriving under concerning conditions, and a debate is intensifying at the state’s Public Utilities Commission over who should bear the financial risk when utility infrastructure sparks a catastrophic blaze — NV Energy’s shareholders or its customers.
After seeking to collect a half billion dollars from customers to bolster its wildfire insurance, NV Energy has secured an additional $250 million in commercial coverage. But Nevada’s largest electric utility is still moving forward with its request to have ratepayers help fund a $500 million self-insured policy the utility could tap in the event its infrastructure causes a catastrophic fire. HUD User
“The fact that somebody wants to be self insured — that’s not particularly unusual in the business world,” said longtime Reno attorney Matt Sharp, who specializes in insurance bad faith and wildfire claims. “The fact they want their customers to pay for it is.” HUD User
State energy regulators agreed it makes sense for NV Energy to carry between $1 billion and $1.5 billion in coverage — an amount in line with other Western power providers such as California’s PG&E and Southern California Edison. But they were not convinced customers should pay for it. HUD User
NV Energy now carries around $772.5 million in wildfire liability coverage, but the company says even that amount is not adequate to cover a catastrophic wildfire event. HUD User
Nevada’s business community is pushing back hard. Energy and utilities consultant Bradley Mullins, representing a variety of businesses including casinos and Nevada Gold Mines, argued that NV Energy’s acquisition of additional commercial coverage directly undermines the utility’s original justification for pursuing customer-funded self-insurance. “NV Energy represented that additional commercial insurance was not available,” Mullins said in testimony before the commission. “That is no longer the case.” HUD User
Mullins went further, warning that it is not reasonable for ratepayers to be treated as an insurer of last resort for catastrophic wildfires. “Requiring ratepayers to absorb the costs of catastrophic wildfires effectively converts ratepayers into a backstop insurer for risks they do not control,” he said. HUD User
If approved, the costs would be structured as a flat monthly charge. Current estimates put costs at $3.02 per month for Northern Nevada residential customers and $0.21 per month for Southern Nevada residential customers. Customers living in high fire risk zones — including Lake Tahoe, Virginia City Highlands, Genoa, Mount Charleston, and portions of Clear Creek south of Carson City — would pay additional fees on top of that. HUD User
There is also a longer-term concern for Nevada businesses. Opponents of the plan caution that NV Energy’s parent company, Berkshire Hathaway, has successfully pursued legislation in other states where its subsidiaries operate to cap utility liability in the event of a utility-caused wildfire. Similar laws have already passed in Utah, Wyoming, and Idaho. HUD User
When asked whether it plans to bring forward similar legislation in Nevada’s 2027 legislative session, the utility did not answer directly but said it “continues to evaluate a range of potential policy options related to wildfire liability and insurance.” HUD User
Mullins recommended that state energy regulators decline to authorize any additional self-insurance for NV Energy until at least the end of the 2027 legislative session, noting that any legislative changes to wildfire liability law could eliminate the need for the self-insurance policy altogether. HUD User
On the ground, conditions are serious heading into this year’s fire season. State Forester and Fire Warden Ryan Shane told attendees at the governor’s annual wildfire briefing that an exceptionally dry winter, heavy grass growth, and leftover combustible fuels from last year are setting Nevada up for a challenging season. So far in 2026, 60 fires have burned 265 acres statewide, with the bulk of wildfire season still ahead. HUD User
Firefighters will rely on nearly 100 wildfire tracking cameras across the state for early detection, and more than 400,000 acres were treated through mechanical thinning and controlled burns last year. HUD User