A proposed ballot initiative would make it possible for Nevada casinos to stop buying power from the state’s largest casino without paying nearly 7 million in fees.
A Nevada group with unknown backers filed necessary paperwork to circulate petitions for a ballot proposal that would end NV Energy’s regulated monopoly on the Nevada power industry. If enough valid signatures are obtained, Nevada voters in November would have the opportunity to end the state-regulator monopoly and buy power from other sources.
The proposal would be particularly appealing to Nevada homeowners who recently installed solar panels, only to learn their promise rate breaks would not happen, and Nevada casino owners. MGM Resorts International, Las Vegas Sands, and Wynn Resorts have filed petitions seeking to leave the utility, but the state regulators say they must pay a hefty price to do so.
The Nevada Public Utility Commission earlier affirmed MGM Resorts International must pay $86.9 million, Las Vegas Sands $23.9 million, and Wynn Resorts $15.7 million to stop buying electricity from NV Energy.
The commission and NV Energy say the fees are necessary to offset costs of improvements the utility made to provide service for the casinos and anticipated getting back from the fees paid by the casinos. If the casinos leave the utility, it says it will have to pass off millions of dollars in costs onto its mostly residential customers.
While the casinos continue seeking ways to exit NV Energy, they also might be backing a proposed ballot measure that would put an end to the regulated monopoly forcing the casinos to buy their power from NV Energy.
Wynn and MGM say they are not involved with the proposed ballot measure, and Reese neither confirmed nor denied Las Vegas Sands was involved.
Las Vegas Sands spokesman Ron Reese said the company continues talking to NV Energy and might seek a settlement to leave the utility, and Wynn Las Vegas filed a court challenge to the fees.
MGM, meanwhile, filed compliance documents to ensure leaving the utility remains an option, although one it said it might not pursue.
