The trio of companies hoping to provide power to the Clark County School District urged the trustees to make a decision within five months to reap the greatest cost savings.

Capital Dynamics, Tenaska and Switch delivered a joint presentation to the School Board of Trustees on Thursday, marking the first public discussion about the district possibly applying to leave NV Energy's service and purchasing electricity from another power provider.

Superintendent Pat Skorkowsky prefaced the discussion by saying he’s obligated to bring potential cost-saving opportunities to the board for consideration. The district’s power bills have ranged from $44 million to $49 million the past few years, he said, making it one of the biggest expenses the organization faces.

“We worked closely to make sure we were bringing forth something that was a fiscally sound opportunity for the district as opposed to just a risky situation,” he said.

Under the proposal delivered to the school board, Capital Dynamics, a global investment firm, would pay the fees associated with the school district’s departure from NV Energy — estimated to be $80 million — and build a 195-megawatt solar project in Nevada. Tenaska Power Service would run the solar project and handle the power management end of the arrangement. Switch, meanwhile, would serve as a partner to help achieve an “economy of scale” and keep energy costs low while working toward innovations related to the energy system. The school district would continue using the transmission lines and other aspects of the grid owned by NV Energy.

The plan would amount to the school district receiving roughly 70 percent of its energy from solar power.

Benoit Allehaut, a director for Capital Dynamics, said the arrangement has the potential to save the school district millions of dollars per year in energy costs. He declined to offer a specific dollar figure, citing the competitive marketplace.

Company officials said the timing is right for the school district to make the move because of federal solar tax credits that will expire by 2023. In other words, if Capital Dynamics can secure the tax credits, it can pass along the cost savings to the district — hence the company’s desire to move forward within five months.

Capital Dynamics would like to break ground on its solar project before the end of 2019 to lock in a 30-percent tax credit, but the exit process involving the Public Utilities Commission is expected to take nine months.

“There’s pressure and the pressure is really to get the greatest return on your investment if you decide to proceed,” said Brad Mamer, a consultant for Capital Dynamics.

The proposal, which would involve the school district entering into a 25-year power purchase agreement with the three companies, didn’t earn unanimous praise. Trustee Chris Garvey, who has developed a reputation for asking the tough financial questions, expressed unease about several aspects of the arrangement, including the risks associated with entering into such a lengthy agreement.

“Sometimes it’s not as easy of an answer as what’s being put forward,” she said.

Other trustees gushed about the potential benefits — specifically, saving money that could be put back in the classroom.

“In general, I think it’s a great way to go,” said Trustee Linda Young, who reiterated her enthusiasm several times during the meeting. “Any time I can save a dime or a penny or anything, I’m always happy to do that.”

Ultimately, the trustees agreed to continue the energy discussion. The board will receive a presentation from NV Energy in the next few weeks. NV Energy officials released a statement Thursday afternoon addressing the school district’s possible exit and highlighting their existing partnership.

“NV Energy is proud of our longstanding partnership with the Clark County School District.  We’ve helped install more than 40 solar and additional energy efficiency projects at schools around the valley,” spokeswoman Jennifer Schuricht said in the statement. “These projects not only help the District save energy and money, this important customer received more than $14 million in related state mandated public policy incentives paid for by NV Energy customers.  We will work with the School District as they evaluate the costs and risks of the proposal that is being presented.”

If the school district decides to exit NV Energy’s service territory, it would be following in the footsteps of several major Nevada businesses, including MGM Resorts, Barrick Gold, Wynn Resorts, Caesars Entertainment and the Peppermill.

Disclosure: Switch, NV Energy, MGM Resorts, Wynn Resorts and Caesars Entertainment have donated to The Nevada Independent. You can view a full list of donors here.