The Sierra Club released its sixth annual Dirty Truth Report on Tuesday, evaluating utility companies across the nation based on their performance in retiring coal, planning gas infrastructure, and deploying renewable energy. NV Energy, which operates two subsidiary companies serving nearly all residential customers in Nevada, was featured prominently in the analysis.
Sierra Pacific Power Company, which serves northern Nevada, received a D grade in this year’s assessment, marking the lowest score since the Sierra Club began tracking the utility’s performance. Nevada Power, the southern Nevada subsidiary, also saw its grades decline compared to prior years. Both territories had previously received positive evaluations for their clean energy transition plans over the preceding five years.
The decline in grades stems largely from NV Energy’s aggressive expansion of gas infrastructure in response to growing demand from artificial intelligence data center operations in the region. Sierra Pacific has announced plans to construct over 2.7 GW of new gas capacity by 2035, a fourfold increase from its previous year’s proposal. Data centers currently represent 5 percent of NV Energy’s sales but are projected to account for 64 percent by 2046, according to the utility’s latest regulatory filings.
The state’s Renewable Portfolio Standard, which was strengthened through a ballot measure in 2020, requires utilities to generate 50 percent of their energy from renewable sources by 2030. However, NV Energy has indicated it now expects to fall short of meeting these targets. The utility has proposed measures it contends would require data centers to cover their own costs and shield customers from related cost increases, though the Bureau of Consumer Protection has stated significant gaps remain in the proposal. Nevada Power was recently required to refund Southern Nevada customers $65 million after overcharging them over two decades.
Sierra Club leaders and members called for the utility to expand clean energy development while implementing stronger consumer protections related to data center expansion, urging state policymakers to enforce accountability for the commitments voters endorsed.
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