Three major casino companies–Las Vegas Sands Corporation, MGM Resorts International and Wynn Resorts Ltd.–may get their wish to leave NV Energy and find alternative sources of electricity on the wholesale market if a proposed constitutional amendment is passed. Recently filed with the secretary of state’s office by a group called Nevadans for Affordable, Clean Energy Choices, the measure would abolish NV Energy’s monopoly on the state’s electric power and let consumers choose how they get their power by 2023.
State regulators recently imposed $126 million in combined exit fees for the three casinos to leave NV Energy, which operates as Nevada Power in Southern Nevada and Sierra Pacific Power in the north. The utility serves about 1.3 million customers statewide.
A rooftop solar coalition also recently filed an initiative that would ask Nevada voters to continue the state’s original and more affordable net metering program for homeowners who want to install solar panels. It also would remove a cap on net metering systems. Starting January 1, rooftop-solar customers were hit with higher monthly fixed charges and a lower rate for excess electricity generated by their systems. NV Energy and the Nevada Public Utilities Commission said the new rates are intended to correct the inequity of non-solar customers subsidizing rooftop-solar customers—however, many rooftop-solar customers find that questionable.
Solar businesses and thousands of customers protested the new rates, forcing the PUC to consider requiring NV Energy to grandfather in existing solar customers for up to 20 years.
To qualify for the November ballot, backers of both initiatives must collect about 55,000 signatures by June 21. Voters would have to approve the energy choice initiative, a constitutional amendment, in 2016 and 2018.
Regarding the initiatives, NV Energy President and Chief Executive Officer Paul Caudill, “I’m not surprised at all, and I don’t think anyone should be surprised. It’s a very complex issue and we’re in no position right now to take a position.” However he said NV Energy is open to discussions with policymakers and stakeholders. “We do understand the market very, very well,” Caudill said.
