Wynn and MGM leave NV Energy

NV Energy is an electricity utility administered by Buffett’s Berkshire Hathaway in Nevada.
NV Energy is an electricity utility administered by Buffett’s Berkshire Hathaway in Nevada.

Both giant gaming companies got the permission to end their provision with the energy utility.

US.- Las Vegas’ major tourism attractions, Wynn and MGM resorts, decided to leave Buffett’s Nevada electricity utility, NV Energy, with Nevada regulators’ previous approval. The gaming companies are filing paperwork to end the provision with the brand, which could require also paying exit fees.

“It is our objective to reduce MGM’s environmental impact by decreasing the use of energy and aggressively pursuing renewable energy sources,” MGM executive vice president, John McManus, published in a letter included in the paperwork presented. The major casino operator would face an exit fee of US$86.9 million after the decoupling in October 1st.

The pushing decision was made last year by both brands. Nevada gaming regulators approved the permission to leave NV Energy –which means a relevant lost for the electricity provider–, with the payment condition of US$127 million in total exit fees. This week, Nevada Public Utility Commission will determine if the casino operators have successfully fulfilled all the requirements to leave NV Energy.

“We are moving forward with the process and plan to exit the grid late this year,” commented Wynn spokesman Michael Weaver. The company expects to start a new providing agreement with electricity utility, Exelon Corp., though the wires for delivery will still be NV Energy’s ones. The same situation happens with MGM, which will buy the power purveyance to Tenaska Power Services. “We will continue to work with MGM to meet their needs as a transmission and distribution customer of NV Energy,” said Jennifer Schuricht, a spokeswoman for NV Energy. Buffett’s Nevada utility built gas and solar plants and supplies most of its own power.