The Clark County School District and NV Energy have struck a deal that could save the district $1.5 million annually.
According to the agreement, CCSD promises to not leave NV Energy in return for the cost savings.
NV Energy will provide $1.5 million in incentive payments to CCSD in 2019, 2020 and 2021.
The utility’s actions the following two years would depend on whether the Public Utilities Commission of Nevada approves NV Energy’s optional pricing program tariff, a pending, cheaper rate option for government entities and large, commercial customers. The program would charge a fixed rate based on costs from renewable resources — including six solar projects — instead of a variable energy rate.
If the PUC approves the rate, NV Energy will deliver energy from the program to the city starting in 2022 in place of the monetary incentive. If the rate doesn’t pass, NV Energy will continue to pay the city $1.5 million in 2022 and 2023.
CCSD’s office of the general counsel has already reviewed and approved the energy agreement.
The savings could be a boon for the school district, which is facing a $17 million to $18 million budget deficit next year. Superintendent Jesus Jara said the agreement will save CCSD money without raising rates for other NV Energy customers.
NV Energy has “been unrelenting in working with us to create a new solution that meets our evolving business and sustainability needs,” Jara said in a joint statement from CCSD and NV Energy.
NV Energy president and CEO Doug Cannon said the utility appreciates the opportunity to keep working with CCSD long term.
“This energy services plan helps CCSD put more money into the classrooms for the benefit of students in southern Nevada,” Cannon said in the statement.
Six companies have departed NV Energy since 2005 to pursue more renewable options and cheaper rates. But in recent months, NV Energy has been pushing long-term agreements to keep its larger customers.
A variety of companies have reached long-term agreements with the utility this year, including Resorts World, Station Casinos and the Las Vegas Convention and Visitors Authority, and the city of Henderson.
Because these are not fully public entities like the city of Henderson or CCSD, NV Energy has not released the details of the agreements.