The city of North Las Vegas has agreed to remain an NV Energy customer for another five years in return for at least $1.25 million in payments or savings.
The city council approved a multi-year agreement last week in which the municipality agrees to remain a full-service electric customer of NV Energy. According to NV Energy spokeswoman Jennifer Schuricht, this deal does not increase rates for other customers.
This comes after a six companies left NV Energy between 2005 and 2018, and 10 companies began efforts to leave NV Energy in 2018.
This deal “provides for important electric infrastructure that will support economic development in the city for the benefit of all its residents,” Schuricht said in an email. “These customized energy agreements allow us to continue to serve our largest customers and by retaining them, actually protect other customers from potential cost increases.”
In this deal, NV Energy agrees to pay the city of North Las Vegas $250,000 in 2020 and 2021.
The utility’s actions the following three years would depend on whether the Public Utilities Commission of Nevada approves NV Energy’s optional pricing program tariff, which would be a cheaper rate option for government entities and large, commercial customers. The program would charge a fixed rate based on costs from renewable resources instead of a variable energy rate.
While NV Energy withdrew its original PUC filing of the rate option, it has indicated that it plans to file an updated version.
If the tariff does not come to pass, NV Energy would continue paying the North Las Vegas $250,000 annually through 2024.
According to the agreement, the amount the city would save under the tariff should be equal to or greater than the incentive payments. If it is not, NV Energy has agreed to pay the city additional cash payments through 2024 to make up for the difference.
Additionally, the agreement gives NV Energy the ability to adjust the incentive payments based on the city’s potential additional savings under a planned $120 million rate reduction. The utility is set to file the rate reduction with the PUC in June.
NV Energy also agreed to seek infrastructure solutions for Apex Industrial Park, an area near U.S. Highway 93 that is expected to grow retail and industrial developments. This includes NV Energy agreeing to complete a switching station and planning other facilities that could accommodate future transmission needs as Apex and the surrounding area continue to grow.