Warren Buffett’s utility NV Energy Inc. holds a near monopoly in Nevada, yet wants to give millions of dollars to a school district as an incentive to stick with the company.
The Clark County School District’s Board of Trustees will vote Thursday on NV Energy’s offer, school district superintendent Jesus F. Jara said in an interview. If approved, the company will pay $1.5 million a year through 2023.
In return, the school district -- which pays an energy bill of about $45 million a year -- will remain a customer for the period and won’t seek to “receive electric service from an alternative energy provider,” according to the proposal.
The potential deal is a sign of how eager utilities are to hold onto big customers, as power providers across the U.S. grapple with increased competition from newer, cleaner and cheaper forms of energy as well as more demanding and environmentally conscious customers. Read more at Bloomberg.com.