Increased energy costs cut into Nevada casino company profits in Q3
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Caesars Entertainment's third-quarter cash flow from Las Vegas casinos was $480 million. The company's energy costs rose by about $100 million in July, August and September. Meruelo Gaming Group's two casinos are paying higher energy prices. Sahara buys its power outside of NV Energy. Grand Sierra Resort in Reno saw a jump in rates during the third quarter. The 704B law was created in 2001 to allow businesses with a large electric load to leave NV energy's electric service and purchase power from another provider. Some operators took part in the 703B process.
MGM Resorts International and Wynn Resort International left NV Energy in the 2010s. They installed rooftop solar panels atop Mandalay Bay Convention Center and a 20-megawatt solar array near Fallon. WynN's chief sustainability officer says the company's use of solar exceeds the requirements outlined in Nevada’s Renewable Portfolio Standard. The law applies to both utilities and private entities that left utility service through the 704B law. The company added a solar panel array on the roof of the Wynns Convention Centre in Las Vegas.
Nevada casino companies are experiencing increased energy costs. Caesars does not purchase power from NV Energy. Sahara buys power for its energy from Tenaska. Tenaska's rates are poised to increase next year. NV Energy is obligated to bill state-imposed programs costs to customers. The rates charged by NV energy are approved by the Public Utilities Commission.
