He published the remarks in several research notes.īoyd Gaming said its maintenance and utility expenses increased 14 percent in the quarter. Truist Securities gaming analyst Barry Jonas, however, was able to gain more detail from company leadership during post-earnings discussions with executives. Others, such as privately-owned Resorts World Las Vegas, struck a market-based electricity supply deal with NV Energy aimed at ultimately powering the property with renewable resources.ĭuring the conference calls, several Las Vegas gaming companies were reluctant to elaborate beyond simply acknowledging the elevated energy costs during the third quarter. More than a decade after the law passed, a handful of casino operators took part in the 704B process as a way to reduce electricity costs. 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, as long as they pay an “impact fee” determined by state utility regulators.

“I’m glad we're not paying the rates that everybody else is paying through NV Energy right now (at the Sahara), but we're definitely feeling it at GSR,” Diss said in an interview. The Grand Sierra Resort in Reno, an NV Energy customer, saw a jump in rates during the quarter.

The Sahara, which purchases its power outside of NV Energy as part of the state’s 704B law, locked in its costs a year ago. Caesars wasn’t the only operator that saw energy rates skyrocket in July, August and September – traditionally the hottest months of the year in Las Vegas.Īndrew Diss, director of government affairs for the Meruelo Gaming Group, said energy expenses were vastly different for the privately held company’s two casinos.

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