The Nevada Public Utilities Commission in January clarified regulatory language to enable state casinos to break from the state’s largest utility and buy power elsewhere.
The commission struck language that required the casinos to report where they obtained energy if they stopped buying it from NV Energy, which is owned by the state’s largest utility, Nevada Power. Nevada Power ultimately is owned by billionaire Warren Buffet.
The state’s prior requirement that casinos report where they obtain their power upon exiting agreements with NV Energy effectively prevented them from leaving and seeking alternative energy sources that are more affordable and sustainable, the casinos argued.
The casinos said it was impossible for them to prove they were buying energy from new sources, but the commission’s recent action no longer requires it.
Although they no longer are restricted by the energy reporting requirement, the commission left a combined $126.6 million in exit fees in place, which also presents a significant barrier to casino’s exiting their agreements with NV Energy.
NV Energy undertook significant improvements to ensure consistent energy for Nevada casinos and its residential customers and factored ongoing payments from the casinos into improvement costs, the commission said. So, if the casinos want to buy power elsewhere, they will have to pay fees to do so.
The commission earlier ruled MGM Resorts International would have to pay $89.9 million, Las Vegas Sands $23.9 million, and Wynn Resorts $15.7 million just to stop doing business with NV Energy, which says it would have to pass off those amounts to its mostly residential customers if the casino companies end their buying agreements.
The casinos appealed the fees ruling and sought clarification on reporting requirements for alternative energy sources.
