LAS VEGAS (KSNV) — As Southern Nevada braces for potential wildfires in the coming weeks and months, NV Energy is taking proactive measures to prevent such disasters.
The utility company is launching “Wildfire Awareness Month” with a comprehensive plan aimed at reducing wildfire risks.
NV Energy’s strategy includes clearing vegetation from around infrastructure to minimize ignition potential, rebuilding overhead powerlines with fire-resistant materials, and switching powerlines in high-risk areas to ‘sensitive’ settings.
These settings allow powerlines to automatically shut off when interference is detected, reducing the risk of starting a wildfire. Additionally, NV Energy plans to implement proactive power outages during conditions that pose extreme fire risks.
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In Carson City, discussions are underway to protect NV Energy from massive liability payouts similar to those faced by Pacific Gas and Electric (PG&E) after the North Bay wildfires in 2017.
Tabitha Mueller, a reporter for the Nevada Independent, said, “According to four people with knowledge of the situation, discussions are taking place behind the scenes about addressing NV Energy liability in wildfires started by a company. It’s fluid. Everything is in the early stages.”
Mueller also noted that NV Energy approached the Public Utilities Commission earlier this year. “I do think what is notable is that in January, NV Energy asked the state energy regulators to approve a $500 million wildfire self-insurance policy paid by ratepayers to protect it in case its equipment sets a fire,” she said.
Efforts NV Energy for comment on the self-insurance proposal were unsuccessful.
News 3 did receive a statement from a spokesperson with the Public Utilities Commission of Nevada,
“The issue of NV Energy seeking to establish a Wildfire Self-Insurance Policy for both its southern and northern Nevada electric service territories is part of an ongoing proceeding (Docket Nos. 25-01018 & 25-01019) at the Public Utilities Commission of Nevada (PUCN). Generally, the PUCN does not comment on ongoing dockets.”
And the statement continues,
“According to its applications, NVE is seeking the creation of a $500 million self-insurance policy to increase NVE’s wildfire liability insurance coverage limits, for a total of approximately $1 billion in coverage. Policy rates are proposed to be collected over 10 years. A consumer session regarding NVE’s self-insurance proposal is scheduled for June 11 at 6 p.m. at the PUCN’s Las Vegas office (there is a notice of the meeting in the docket filings).”
The outcome of these discussions and their potential impact on rates remain to be seen.
The settlements from the Northern California wildfires in 2017 and 2018 ultimately forced PG&E into Chapter 11 bankruptcy.