Las Vegas working on new utilities deal with NV Energy

After a monthslong back-and-forth that included quiet threats to leave the grid, Las Vegas may soon reach a new utilities deal with NV Energy.

City leaders on Monday confirmed they're close to an agreement to restructure the city's utility bills with NV Energy, though they didn't completely back away from the possibility of ditching the state's largest power company.

City Council members said officials -- perhaps emboldened by the proposed exit from the grid of several gaming companies and other large power consumers -- have spent months rehashing Las Vegas' existing contract with the company.

That contract sees taxpayers shell out some $20 million annually to keep the lights on across dozens of city parks, offices and utility buildings.

City Manager Betsy Fretwell said Las Vegas is "really close" to reaching a new deal with NV Energy, but stopped short of saying a final version of that deal would be unveiled at a Tuesday press conference to tout a new partnership with the company that will "take the city to a new level of sustainability."

Fretwell said a preliminary agreement struck with the company would allow the city to transition to 100 percent clean energy perhaps as soon as 2017.

She declined to disclose any potential savings tied to that transition, beyond noting that "conservation measures" would be used to make up any difference in costs incurred as part of the move.

City Councilman Bob Beers estimated there's still a 25 percent chance the city will decide to buy its power elsewhere.

That would make Las Vegas the first city to land on a growing list of big, disgruntled NV Energy customers -- including Wynn Las Vegas, MGM Resorts International and Las Vegas Sands Corp. -- looking to exercise their right to leave the company.

A 2001 law allows large utility consumers to do so only after they've paid a fee, won the approval of state regulators and agreed to provide new power to the grid.

Fretwell sounded confident the city, which has never publicly discussed its ongoing talks with NV Energy, won't have to meet any of those pull-out provisions because she does not expect to leave the grid.

"We're a public agency and we're very proud of that partnership (with the company)," Fretwell said. "Nothing's 100 percent, but I feel very comfortable with the agreement we've reached."

NV Energy did not return requests for comment Monday.

Beers expects his city won't be the last to try and strike a better bargain with the company.

"I think all large utility users have talked about it," he said. "It's probably good to have this reanalysis.

"As (power generation) becomes decentralized, there will come a day when we won't need the grid."

Contact James DeHaven at jdehaven@reviewjournal.com or 702-477-3839. Find him on Twitter: @JamesDeHaven