Nevada Expected to Deny Buyers’ Requests for Competitive Power

On April 29, Retail Energy Buyer reported that four major Las Vegas casinos and data storage provider Switch had filed with the Nevada Public Utility Commission (PUC) to switch to competitive power suppliers. Energy Choice Matters reported this week that a draft PUC order would deny Switch’s request to switch from utility company Nevada Power to competitive power supplied by a third party. The draft order concluded that the company’s departure would leave remaining large commercial and industrial customers on the hook for utility contracts and investments intended to meet Switch’s energy needs. The PUC also suggested the previously proposed $27 million exit fee would be too small to cover these costs.

The Switch ruling could serve as precedent for similar cases. If the PUC issues the order as is, it is likely (but not certain) that the Commission will deny the casinos’ requests to switch to competitive providers as well.

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