NV Energy, owned by billionaire Warren Buffet, will receive nearly 7 million from three Las Vegas casino companies in they choose to leave the utility.
The Nevada Public Utilities Commission on December 2 approved allowing MGM Resorts International, Las Vegas Sands, and Wynn Resorts leave NV Energy if they pay a nearly $127 million fee to do so.
The commission approved the three casino operators’ applications to leave the utility on February 1, so long as they pay a combined $126.6 million in exit fees.
Caesars Entertainment also is considering leaving NV Energy, but has not submitted an application to do so.
The casinos want to pursue more economical, sustainable, and energy efficient forms of energy, such as solar power and natural gas, but the utility is demanding an exit fee to offset the revenue loss. Without the fee, NV Energy claims it will have to pass on that amount to its mostly residential consumers.
To exit the utility, MGM Resorts International would have to pay $86.9 million, Las Vegas Sands $23.9 million, and Wynn $15.7 million.
MGM and its properties account for about 4.86 percent of NV Energy’s total sales, the Las Vegas Review Journal reported.
While the casinos won approval to leave NV Energy, Las Vegas officials announced the city is partnering with NV Energy to eventually provide solar power for the city’s retail load.
The partnership needs regulatory approval from the state’s Public Utilities Commission and be ratified by the Las Vegas City Council to proceed.
