Court rules that customers can sue Nevada Power Co.

Thursday, Dec. 23, 2004 | 11:01 a.m.

CARSON CITY -- The Nevada Supreme Court ruled today that customers of Nevada Power Co. can sue the Las Vegas based utility for allegedly overcharging its customers.

The court refused to issue a writ to stop the suit of Bonneville Square Association and Union Plaza Hotel and Casino from moving forward in district court in Clark County.

The casino and Bonneville, which owns commercial office buildings in Southern Nevada, sued on behalf of themselves and hundreds of other customers, claiming the utility has been overcharging them because of the location of the meters near the transformers.

The location of the meter determines whether a customer should be charged a higher or lower rate. Attorneys for the customers contend they may have been overbilled by $20 million to $30 million over the past 20-30 years.

The utility sought a writ to force the issue to be decided by the state Public Utilities Commission, contending it had jurisdiction over these issues.

The Supreme Court, in its unanimous opinion, said the suit focuses on "Nevada Power's misrepresentations and failures to disclose information to certain of its customers, resulting in over billing." It said the claims fall within the jurisdiction of the district court.

The gaming company and Bonneville maintain the placement of the meter regulates how much energy is used. In the case of the two companies, they maintain in their suit that they were never told it would cost more in the location of the meter.