Potential misuse of taxpayer dollars by NV Energy?

in Finance by Bill Hadala — June 6, 2010 at 9:14 pm | 0 comments

May 31, 6:46 PM
Las Vegas Stock Market Examiner
Bill Hadala

The Las Vegas economy has been hit hard in recent years. According to the Las Vegas Sun the jobless rate hit a record 14.2%. Unemployment in Las Vegas in April shot to a record high of 14.2 % with an estimated 140,900 residents out of work.

Though the unemployment rate is high it’s business as usual for both local and national companies. According to the City of Las Vegas, the City wants to become the capital for “Alternative Energy & Sustainable Green Technology” for the world. Such a vision is an amazing opportunity considering the city is located in the middle of the desert, has plenty of sun and is already a major travel destination for the convention industry.

NV Energy recently received $280 million from the Department of Energy to create a statewide SMART Grid network. The taxpayer dollars will be used to deploy wireless technology to allow two-way communication between meters on homes, businesses and the utility.

Beyond the obvious energy savings, there is a huge opportunity to use the wireless systems to provide much needed interoperable communications systems for public safety and government agencies who are currently cash strapped and laying off workers.

Right now NV Energy is only looking to use the taxpayer money for its own SMART Grid proposes. According to officials at Clark County Government, NV Energy senior management is reluctant to use the wireless networks to help the city and state due to lack of understanding of cutting edge technology that is currently available through companies such as General Electric and IBM.

The potential good news is the wireless systems NV Energy should deploy using taxpayers dollars in partnership with companies such as General Electric and IBM could be used for safety, government, education and healthcare communication needs. The wireless network could be used to provide residents and businesses with free high speed Wi-Fi broadband similar to Corpus Christi, Texas.

There is obviously a need to help prompt the mindset of NV Energy. The utility still remains a great long-term investment opportunity. However, institutional investors, environmentalists, legislators, activist and tax-payers have an opportunity to create long-term economic development and “Green / Alternative Energy” employment opportunities if only NV Energy can be swayed to play nice with the American Tax Payer’s money. Such a shift could make Las Vegas an Alternative Energy & Smart Sustainable Capital that would become a model for the rest of the world to follow equating into a much needed rise in tourism and conventions.

Perhaps the Michael Yackira, President and Chief Executive Officer of NV Energy will be open to an interview.