Station Casinos to drop exit application, stick with NV Energy for electric service
Yet another major Nevada business has backed away from efforts to leave NV Energy’s electric service and has announced it will stick with the state’s incumbent electric utility.
In a joint statement sent Tuesday, NV Energy and Station Casinos announced they had reached an agreement on fully bundled electric service and that the casino company — which owns multiple properties in the Las Vegas area including Red Rock Casino Resort and Spa, Palace Station and Green Valley Ranch — would withdraw its application before the state’s Public Utilities Commission to depart from utility electric service and purchase power from another provider.
The withdrawal comes amid numerous other large power users announcing decisions to stick with the utility after flirting with a departure from NV Energy; in recent weeks, the Cosmopolitan, Las Vegas Sands, the Las Vegas Convention and Visitors Authority, Grand Sierra Resort, the Atlantis, Golden Gaming and South Point have all announced plans to stay with NV Energy.
“The existing long-term relationship between our companies, together with our shared commitment to the Southern Nevada community, were important factors in making our decision,” Station Casinos executive Stephen Cootey said in a statement. “That, combined with NV Energy’s commitment to meet our evolving energy requirements in a price-effective way, created a partnership that is truly valuable and one that we want to continue in the future.”
The casino company initially filed its application to leave the utility in June 2018, and received a draft order in September with a roughly $15.2 million immediate impact fee if it wished to depart the utility. Such fees are required under Nevada’s 704B law, which allows large power customers to file applications to leave the utility in return for paying an “impact fee” designed to ensure higher costs are not fostered on other utility customers.
The company filed and was granted a request to delay compliance reporting with taking electric service from another provider in May of this year, citing a desire to consider NV Energy’s Optional Pricing Program Rate as an alternative option. The program, which still needs to be approved by the PUC, would offer a stable subsidized rate to a subset of utility customers eligible to depart the utility.
“We value their business and appreciate the opportunity they gave us to reach an agreement that retains Stations Casinos as an important fully-bundled electric service customer,” NV Energy CEO Doug Cannon said in a statement.