NV Energy powerless
Two major Las Vegas resorts have informed the state they are dropping Nevada Power—an arm of NV Energy—as their power supplier.
Wynn Resorts and MGM Resorts will have to pay for the privilege—$86.9 million in MGM’s case and a bargain $15.7 million for Wynn.
“After careful thought and analysis over many months, we have concluded our objectives are best met by purchasing the energy required to operate our resorts, and serve our customers and guests, from a source other than NV Energy,” said an MGM letter to the Nevada Public Utilities Commission, which approved the exits in December.
The casinos will seek suppliers on the open market. MGM will break away on Oct. 1. Wynn has not yet named a date.
The Las Vegas Sands had also announced such plans but has not completed filings and objects to the size of exit fees. The PUC has said the fees “are necessary because NV Energy’s remaining ratepayers would otherwise be forced to pay increased rates to allow recovery of costs already incurred to provide reliable electric service to the casinos.”
To exit, the casinos are using a law that was enacted to deal with shortages during the early 21st century deregulation crisis, which was not repealed after that crisis passed.