Big Vegas firms again file to leave Nevada Power grid

Thursday, Jan. 2, 2003 | 11:01 a.m.

Nine large power users declared their intent to leave the Nevada Power Co. grid in filings Tuesday with the Public Utilities Commission of Nevada.

The nine companies, seven represented by Las Vegas-based Nevada Energy Buyers Network, include seven casino companies that own 29 resorts.

The companies are the first to apply under a new state law permitting large power users to seek cheaper rates from other power providers. Six of the companies had similar filings last summer but withdrew them in December because market conditions changed enough to make the plan to leave Nevada Power less attractive. Conditions have since changed.

The PUC will consider the requests, which ask that the companies leave the utility July 1.

The seven companies represented by Nevada Energy Buyers Network that have applied to leave the utility are Park Place Entertainment Corp.; Station Casinos Inc.; Coast Hotels and Casinos Inc.; Stratosphere Corp., which owns the Stratosphere hotel-casino and two Arizona Charlie's operations; Gordon Gaming Corp., which owns the Sahara hotel-casino; Rouse Fashion Show Management LLC, which owns the Fashion Show mall; and Potlatch Corp., North Las Vegas.

Also applying to leave Nevada Power are MGM MIRAGE and Victoria Partners, which is filing on behalf of the Monte Carlo hotel-casino. The Monte Carlo is jointly owned by MGM MIRAGE and Mandalay Resort Group.

The Nevada Energy Buyers Network applicants have listed Reliant Energy, Houston, and Sempra Energy and Coral Power, San Diego, as potential alternate power suppliers. MGM MIRAGE and Victoria Partners have listed those three suppliers and APS Energy Services, Phoenix, as potential alternatives.

The companies will be required to pay exit fees to Nevada Power to leave the grid to compensate the utility and existing customers for fixed costs incurred on their behalf.