NV Energy Battles to Keep Large Customers

(BRK.A), (BRK.B)

Working to stem the tide of defections of some its largest customers, Berkshire Hathaway’s NV Energy has received approval for a new rate structure that gives lower rates to large energy users.

NV Energy says it has had an “impressive response” to its proposed “NV Energy Optional Pricing Program Rate” that allows eligible large energy users to pay a rate derived from low-cost, Nevada-based solar resources.

Twenty-six large customers from both northern and southern Nevada have formally submitted their interest in the program. The customers include several government, education and other public entities, as well as gaming companies and heavy industrial users.

The pricing option will reduce the cost most eligible commercial customers pay for electric service while NV Energy retains the renewable energy credits in order to comply with Nevada’s renewable portfolio standard for the benefit of all customers.

The company declined to provide names of interested entities to protect customer privacy, however the City of Las Vegas is likely to be one of the entities, as Tenaska, the Omaha-based power provider that a provides electric service to MGM Resorts and Caesars Resorts, has withdrawn its bid to serve the city.

The “open window period” will remain open while the company undergoes a robust documentation process to validate the first-in-time, first-in-right priority order.

© 2019 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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