Yet another casino operator is seeking to unbundle from NV Energy’s system. Caesars Enterprise Services recently filed two applications to purchase energy, capacity and/or ancillary resources from Tenaska Power Services. Caesars operates 11 major hotels and casinos and related facilities in Nevada Power’s service territory, and three major hotels and casinos and related facilities in Sierra Pacific Power’s service territory.
Caesars intends to enter into an agreement with Tenaska to acquire energy and capacity beginning September 1, 2017, with an initial term of three years for its facilities in both utilities’ service territories. Caesars anticipates that it will procure ancillary services from NPC and SPPC pursuant to the terms of the two utilities’ OATTs.
Last month, Nevada voters approved the Energy Choice Initiative (Question 3), which amends the state’s constitution to create and facilitate open, competitive electricity markets that provide customers with “meaningful” energy choices. Question 3 effectively prohibits a legal monopoly structure for electric utilities, while explicitly allowing customers to generate electricity for themselves or in association with others, and to join with and to sell electricity on the market. Nevada’s legislature would be required to enact laws to create an open, competitive electricity market by July 1, 2023. (Note: Voters must re-approve Question 3 in 2018 in order for it to become law.)