NEVADA

The Public Utilities Commission of Nevada (PUCN) held a hearing June 3 through 5 on NV Energy’s wildfire insurance proposal following phase I, completed in June 2025, determining wildfire liability coverage across the state. The proposal comes as wildfire insurance markets across the western U.S. become increasingly expensive and more limited in availability.

In phase I, the commission determined NV Energy should maintain approximately $1 billion to $1.5 billion in total wildfire liability coverage and found that adding an additional $500 million in wildfire liability coverage would be reasonable.

The most recent hearing focused on whether NV Energy’s proposed wildfire captive-insurance structure is a reasonable and cost-effective way to provide that additional layer of coverage compared to traditional commercial insurance.

NV Energy is proposing a $500 million wildfire captive insurance policy to supplement its existing commercial wildfire coverage.

The proposal includes the following:

• The captive insurance policy would cover wildfire liability claims associated with a qualifying event.
• Instead of paying premiums to an outside insurer, premium revenue would accumulate solely for wildfire-related liability coverage under the terms of the policy.

Like traditional insurance, the premiums for the proposed policy would be paid for through rates. The proposed monthly residential impact is estimated at approximately $3 per month for Northern Nevada residential customers.

~ NV Energy press release