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LAS VEGAS (KTNV) — The Las Vegas City Council will consider a letter of intent to negotiate with a deal that could see it become the first city in Nevada to leave the utility.
The letter of intent with Nebraska-based Tenaska Power Services is on the consent agenda for Wednesday’s council meeting.
This as a second item would also begin negotiations with NV Energy on regarding a new agreement with the utility.
Both agenda items note the moves are being made as the city’s current renewable energy agreements with NV Energy are set to expire this year.
If it decides to make a move away from NV Energy, the City of Las Vegas will join the Las Vegas Convention and Visitors Authority which recently filed paperwork with the Public Utilities Commission to begin the process of leaving the utility.
In filings with the PUC, NV Energy says it has identified 42 customers and six government entities that use enough electricity annually to leave the utility under state law.
Many of the largest energy users in the state have already started the process of at least exploring the move.
MGM Resorts are paying $87 million to leave NV Energy and move an agreement with Tenaska. Wynn Resorts and Caesars Entertainment properties have also left the utility company.
Ten other companies filed initial paperwork with the PUC in 2018, and three have already filed this year.
Part of the negotiations between the city and Tenaska would likely center on whether the savings under the new company could offset the exit fee the city would face for leaving NV Energy.
For its part, the utility says it is working to keep the City of Las Vegas as a customer.
"We believe we are the best energy partner for the City of Las Vegas and will continue to work closely with them to offer solutions to keep them as a fully-bundled customer," Jennifer Schuricht with NV Energy said in a statement.
The exits fees are the biggest hurdle when it comes to companies making a move, but are built into the law allowing companies to forge their power path. Those fees, set by the PUC, are meant to offset infrastructure costs incurred by the utilities to cover the electric needs of large companies for up to 20 years in the future.
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