CARSON CITY -- Three major casino operators that have filed paperwork to exit the NV Energy grid and buy their energy from other suppliers would face combined upfront fees of at least $126.5 million as well as ongoing unspecified costs.

The Public Utilities Commission of Nevada is considering requests by Las Vegas Sands, Wynn Las Vegas and MGM Resorts to leave NV Energy’s bundled retail electric service and instead purchase energy from alternative suppliers.

To protect remaining NV Energy customers from paying higher rates, draft orders in the three pending cases before the Nevada Public Utilities Commission recommend that, upon exiting, the companies must pay upfront impact fees totaling $126.571 million ($23.906 million for Las Vegas Sands Corp.; $15.738 million for Wynn Las Vegas; and $86.927 million for MGM Resorts), plus recurring fees and charges to recover certain ongoing costs that cannot currently be quantified. These fees are necessary because NV Energy’s remaining ratepayers would otherwise be forced to pay increased rates to allow recovery of costs already incurred to provide reliable electric service to the casinos.

Hearings in each case were conducted in October and November. The draft orders, proposed by Commissioner Alaina Burtenshaw, will be considered at the three-member commission’s Dec. 2 meeting, scheduled for 9:30 a.m. at PUCN offices in Las Vegas and Carson City.

The impact fees reflect the casinos’ share of long-term costs that are embedded in NV Energy’s rates.

NV Energy has incurred significant costs constructing facilities and acquiring energy resources to meet the casinos’ current and future electricity demands. The impact fees ensure that the casinos remain obligated to pay for the portion of NV Energy’s costs that they have caused. Additionally, the impact fees prevent the casinos from avoiding payment of their proportionate share of costs associated with Nevada’s legislatively mandated energy policies, such as the Renewable Energy Program Rate (REPR), Temporary Renewable Energy Development charge (TRED), Energy Efficiency Program Rate (EEPR), Energy Efficiency Implementation Rate (EEIR), long-term renewable energy power purchase contracts required by the state’s Renewable Portfolio Standard, and Senate Bill 123 costs, which include coal plant decommissioning and site remediation costs.

The casinos’ requests, which were filed as separate applications pursuant to Chapter 704B of the Nevada Revised Statutes, have been assigned Docket Nos. 15-05002 (Las Vegas Sands Corp.), 15-05006 (Wynn Las Vegas), and 15-05017 (MGM Resorts). Information about the applications and draft orders can be found on the PUCN’s website at puc.nv.gov. From the top navigational bar on the home page, select Dockets, followed by Electric Dockets. Scroll to the individual docket number and select View.