Tesla Motors Inc (NASDAQ:TSLA) has partnered with a Las Vegas data company to end NVs monopoly in the energy sector. Tesla together with Switch is both backing an initiative which would create a competitive electricity market.
Though the two companies were not initially involved in the first ballot of the initiative which was given out in February, they have decided to throw their weight onto the second one. The organizers of the vote have been trying to drum up support and get a coalition, and this will come as good news to them. Tesla Motors and Switch have all been active in the debate about the future generation of energy in Nevada.
Tesla’s Chief Executive, Elon Musk, is also the chairman of SolarCity. Earlier this year he talked about the rooftop solar debate urging the Public Utilities Commission of Nevada to rethink some of their decisions one which included the increase in fixed fees for customers. The billionaire has met with the state’s chief economic development official and legislators discussing the future of grid. The meeting which took place at his Northern Nevada battery factory also had storage batteries function on rooftop solar also on its agenda.
Musk said in a statement, “solar energy is the cheapest energy today in the state of Nevada and ‘Energy Choice’ will enable Tesla and all Nevadans to choose solar.” In addition to Musk’s announcement the CEO for Switch said the initiative was a good way to boost and encourage clean energy. The CEO, Rob Roy, said: “Nevada could create unparalleled opportunities for renewable energy that remain largely untapped due to a lack of forward thinking energy policy.”
The initiative which was filed with Secretary of State’s office was announced back in February and no backers were disclosed at that time. Several sources mentioned the backing by gaming and tech companies. At least three well-known gaming firms have been known to want to leave the NV Energy service and start buying it on the open market. The three companies are Las Vegas Sands Corp, MGM Resorts International and Wynn Las Vegas LLC. The three companies applied to leave last year to which they were told to pay $125 million to leave. The initiative might be a way out of paying the fees for them.
Las Vegas Sands could not confirm whether they were for the initiative or not, and the other two companies have distanced themselves from the initiative.