MGM Resorts plans to leave Nevada Energy as a customer by early October and buy power for its various properties on the wholesale market.
The decision obviously involved a careful assessment of pros and cons because the cost of leaving the power company’s roster of customers will be $86.9 billion, a figure calculated to make sure smaller customers do feel the sting of rate increases because of the MGM action.
In a letter to the Public Utilities Commission, John McManus, MGM executive vice president, said, “It is our objective to reduce MGM’s environmental impact by decreasing the use of energy and aggressively pursuing renewable energy sources,” he said in the letter to the PUC. “Our imperative is heightened by increasing customer demand for environmentally sustainable destinations.
“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.”
MGM is 4.86 percent of Nevada Power’s annual energy sales. MGM had indicated early on that it intended to leave the utility, a part of NV Energy, with approval of its exit application.
Other gaming companies have been critical of NV Energy for raising rates and focusing on profits instead of lowering electricity rates to customers.
Warren Buffet’s Berkshire Hathaway unit, MidAmerican Energy Holdings Co., bought Nevada’s main electric utility in 2013.
Phil Hevener has been writing about the Nevada gaming business for more than 30 years. Email: