Wednesday, April 3, 2019 | 12:34 p.m.
The city of Las Vegas will stay with NV Energy after briefly considering entering a new deal with an alternative power provider, City Manager Scott Adams announced today.
The city was in discussion with Omaha, Neb.-based energy company Tenaska and was planning to enter negotiations with both Tenaska and NV Energy in search of a lower energy rate. But Tenaska withdrew its application from the running, Adams told the council.
The announcement was met with applause from union leaders, tradesmen and local business owners who attended the council meeting. Lobbyists for unions and other groups had expressed opposition to the city entering a deal with a new energy provider, concerned that the move could prompt layoffs at NV Energy and would come with a hefty exit fee, set by the Public Utility Commission and paid for by Las Vegas residents.
Dave Brown, a representative from Tenaska, thanked the city for engaging with the company. He did not disclose why reason the company withdrew its bid.
“It became evident yesterday to Tenaska that they would be better served to pull their application today, so that’s what we’re doing,” Brown said.
Las Vegas would have been the largest municipality in Nevada to leave NV Energy, following in the footsteps of major NV Energy customers such as the Las Vegas Convention and Visitors Authority and some casino companies that have recently left the public utility. Those entities cited a desire to reduce energy costs and increase renewable energy consumption as reasons for switching power providers.
Adams and Doug Cannon, president and CEO of NV Energy, assured councilors that the city would still be able to save money on energy by staying with NV Energy.
Cannon further promised that NV Energy will request a rate cut of $100 million in 2020, to benefit all NV Energy customers, and that Las Vegas will be able to participate in the utility’s optional pricing program, which would help ensure that prices stay stable and low.
“In addition, we will deliver a solution to the city that allows the city to be 100 percent renewable and continue to be a leader in the environmental and sustainability field in this county,” Cannon said.
Mayor Carolyn Goodman said she was grateful for NV Energy’s continued partnership with Las Vegas.
“You’re family,” Goodman said.
