MGM Resorts is planning to leave the NV Energy grid in October even if it has to pay $86.9 million in exit fees to do so. Wynn is also planning to leave the NV Energy Grid late this year, but is challenging the legality of the calculation of exit fees. The casinos plans to leave NV Energy under a law passed in 2001 law that allows corporate customers to leave the power grid. MGM’s plan to exit still requires Public Utility Commission (PUC) approval. Another casino Las Vegas Sands Corp has dropped plans to leave the grid, presumably deterred by the large exit fee.
Reportedly a number of states in the U.S. have legislation allowing large corporate customers to leave the grid. In about 18 of these like Texas and Georgia there are no exit fees. In others such as Nevada there are exit fees though the legality of large exit fees is being challenged.
NV Energy has a green tariff program, called Green Energy Choice in northern Nevada, that offers customers the choice of using 100 percent or 50 percent renewable energy but they have to pay an additional amount on their monthly bill for using renewables. But MGM Resorts has signed 20 year power purchase agreements (PPAs) with independent power suppliers who can supply renewable power much cheaper than NV Energy can. So much cheaper that MGM is willing to pay over $80 million to leave the grid.
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