Caesars files paperwork to dump NV Energy

By Daniel Rothberg

Wednesday, Nov. 30, 2016 | 2:56 p.m.

Caesars Entertainment is asking state regulators for approval to quit buying electricity from NV Energy, according to a recent filing with the Public Utilities Commission of Nevada.

The gaming giant is the latest Nevada company to seek permission to purchase power on the open market.

In October, MGM Resorts International and Wynn Las Vegas stopped buying power from NV Energy after paying more than $100 million in exit fees.

Data company Switch is also working through litigation and the regulatory process to cut ties with the utility.

MGM Resorts and Wynn represented about 6 percent of NV Energy’s customer base, and demand for the utility’s power would take another hit if Caesars takes its Strip casinos offline.

Caesars’ application, dated Nov. 23, must be approved by the PUC, which regulates NV Energy’s monopoly. The commission is likely to require Caesars to pay a sizable impact fee to ensure energy rates do not spike if it departs.

In the company’s regulatory filing, a Caesars executive said purchasing power on the open market could allow the company to better manage its carbon footprint and cut costs.

Buying power on the open market can be attractive to large companies with energy-intensive operations. Such companies argue that wholesale prices better reflect the value of electricity.

Caesars’ filing comes as some large companies, environmental advocates and residential customers are pushing to create a competitive market in the state.

In November, Nevada voters overwhelmingly approved the Energy Choice Initiative, a ballot measure that would effectively end NV Energy’s monopoly on supplying power. To be enacted, the measure, backed by Switch, Las Vegas Sands and Tesla, must be approved by voters again in 2018.