NV Energy, a public utility company based in Las Vegas, is having a difficult time keeping casinos on their client’s list. Fortunately for this company, they’ve just secured a 20-year contract with Resorts World. It’s a big move and one that not everyone agrees with.
A large number of major Vegas casinos are choosing to leave NV Energy right now. There are many that question how this company will fare after losing some of its biggest customers. Today, we’re looking at why Resorts World has partnered up with one of Las Vegas’ most successful energy providers.
Why Are so Many Companies Leaving NV Energy?
This major energy company was founded all the way back in 1928. Today, it provides electric service throughout the state. It serves nearly 1.3 million Nevada locals, and more than 40 million tourists visiting Reno and Nevada every single year.
Nevada has set some unusual laws on energy consumption. Large power users, including casinos and hotels, have the ability to choose which energy provider they partner with. These establishments can file an application to leave NV Energy and partner with smaller companies offering better rates.
A simply Yelp review will tell you a lot about NV Energy. It does not have a great reputation with customers, particular due to high fees and poor customer service. Some of the biggest casinos in Las Vegas seem to feel the same way.
Money is the issue here. These casino establishments realize they can save significantly more money by moving to smaller energy providers. As you might expect, this is not sitting well with the Nevada Energy executives.
Which Casinos Are Leaving the Energy Monopoly?
One company holding all the chips is, generally speaking, not a great thing. NV Energy has the ability to set prices and for a long time, no other options were available. That’s not the case anymore.
Over the past two years, many different casinos have contemplated leaving this company for an alternative source of energy. Back in December of 2018, Boyd Gaming announced they were leaving. Starting in September, they will receive their electricity from Tenaska Power Services Company.
Boyd was one of eight major casino companies to leave NV Energy last year. MSG Las Vegas, Atlantic Casino Resorts Spa, and Fulcrum Sierra BioFules are just a few that come to mind. Station Casinos announced they intended to leave as well, although that decision seems to have changed.
In June, Station Casinos decided to stick with the state’s major energy supplier. A number of other companies that flirted with the idea of leaving, including Cosmopolitan, Las Vegas Sands, Grand Sierra Resorts, and more all decided to stick around. Earlier this year, NV Energy began working to discourage companies from jumping ship.
Stricter Measures to Discourage Companies Leaving
For a time, it looked like NV Energy was in serious trouble. A few of the biggest casino operators in the world looked ready to head elsewhere. If that were to happen, NV Energy’s executives would need a serious discussion of how to approach things moving forward.
Things are taking a turn. This week, it’s being announced that Resorts World has officially agreed to a new 20-year partnership with Nevada’s major energy company. The new resort, set to open in 2020, will receive a fully bundled electrical service with 100% renewable resources.
“As we are developing the newest and most exciting integrated resort to be built from the ground-up on the Las Vegas Strip in recent years, it was important to us that we do so in an efficient and environmentally sustainable manner. NV Energy came to the table with new and better solutions to help us meet these goals now and into the future,” said Scott Sibella, CEO of Resorts World.
NV Energy isn’t taking any chances. They have officially filed a request for higher fees to companies abandoning their services. Nevada’s state government has not yet decided to pass or deny the higher fees.
For now, things are definitely looking better for the company. Make sure to stay tuned for updates on the situation as they come up.