Deal to keep Switch with NV Energy up for review
CARSON CITY — An agreement reached between Switch, NV Energy and state regulators that would keep the data storage company as a customer of the utility is up for review Thursday by the state Public Utilities Commission.
The agreement, filed with the Nevada Public Utilities Commission earlier this month, would allow Switch‘s expanding business in Southern Nevada to be served with 100 percent renewable energy. Switch will remain a customer of NV Energy. The agreement has been signed by Switch, NV Energy and the PUC regulatory staff.
As part of the settlement, Switch‘s growing energy load will be served from a new 100-megawatt solar photovoltaic project to be constructed by First Solar north of Las Vegas. The new solar facility, to go into commercial operation in late 2016 and be named Switch Station, would deliver renewable energy to the NV Energy transmission and distribution grid.
Switch will pay a premium for 100 percent green energy under what is termed the NV Green Energy Rider tariff.
Switch was the first large Nevada company in recent years to seek to leave Nevada Power Co., doing business as NV Energy, and seek its own electricity on the wholesale market. The PUC however, in a vote in June, rejected the exit application even with a $27 million “exit” fee to cover the utility‘s infrastructure development in part to provide the company with its energy needs.
Three major gaming companies, Wynn Las Vegas, MGM Resorts International and the Las Vegas Sands Corp., have also filed applications to leave Nevada Power and seek their own energy supplies on the open market. A fourth company, Caesars, has filed a notice to leave as well.
The applications from the three gaming companies are now under review by the PUC.
At the same time, the PUC is working on a new formula to ensure there any exits by large companies will protect existing customers who remain with the utility. The gaming companies currently consume about 370 megawatts of electricity at the time of year that Nevada’s Power electricity demand is at its highest level.
Contact Sean Whaley at swhaley@reviewjournal.com or 775-687-3900. Find him on Twitter: @seanw801
