Switch gains approval to leave as retail customer of NV Energy
CARSON CITY — State utility regulators, with no dissent, approved an order allowing data storage company Switch to leave as a retail customer of NV Energy and buy power from other providers.
The company agreed to pay a $27 million exit fee to the utility giant, an assessment designed to protect remaining utility customers for investments already made in electricity infrastructure to meet demand.
Thursday’s action reverses the PUC’s 2015 denial of Switch’s original exit application.
Switch has a data storage complex in Southern Nevada and is building another facility in Northern Nevada at the Tahoe Reno Industrial Center near the Tesla Gigafactory east of Reno.
PUC Chairman Joseph Reynolds said that there was no opposition filed against the application and staff indicated its approval.
“PUC staff have vetted this matter and fell comfortable representing it is in the public interest,” Reynolds said.
Sam Castor, associated general counsel for Switch, said the company’s exit is in keeping with its principles of using sustainable resources.
“Switch is very focused on doing the right thing and adhering to our principles and karma,” he said before the vote.
Switch joins large gaming companies that were approved to leave as retail customers of the utility.
Wynn Resorts Ltd. paid a $15.7 million exit fee while MGM Resorts International paid $86.9 million. Both companies left in October.
Caesars Entertainment Corp. filed an application last month to withdraw as a customer of NV Energy and buy power on the open market.
Contact Sandra Chereb at schereb@reviewjournal.com or 775-687-3901. Find her on Twitter: @SandraChereb.
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