Warren Buffett's Nevada Monopoly: How He Spent $63M to Kill Your Energy Choice
In 2018, Nevadans had a chance to break NV Energy's monopoly and choose their own electricity provider. Warren Buffett spent $63 million to stop them—and won.
In 2018, Nevada voters faced a simple question: Should you be allowed to choose where your electricity comes from? Warren Buffett spent $63 million to make sure the answer was no.
The Monopoly
Nevada law grants NV Energy a virtual monopoly on electricity generation, transmission, and sale in the state. The 112-year-old Las Vegas-based company controls the power for nearly every home and business in Southern Nevada.
In 2013, Berkshire Hathaway—Warren Buffett's company—bought NV Energy for $5.6 billion (total deal value around $10 billion including debt). Since then, the utility has operated as a cash machine:
- $12+ billion in assets
- $100+ million in annual net income
- $700+ million in net operating income (2017)
The 2018 Ballot Fight
Question 3 on the 2018 ballot would have amended Nevada's constitution to allow customers to choose their own electricity provider by 2023, breaking NV Energy's monopoly.
The measure was backed by casino companies like Las Vegas Sands (Sheldon Adelson invested $22 million), who argued that increased competition would lower prices and keep jobs in Nevada.
NV Energy's response was overwhelming:
- $63 million spent on the "No on 3" campaign
- Nearly $100 million total spent by both sides—the most expensive ballot measure in Nevada history
- Aggressive advertising warning of "out-of-state" energy companies
The result: 67% of Nevada voters rejected energy choice.
"It Goes to Omaha"
Wynn Resorts president Matthew Maddox made the stakes clear during the debate: "NV Energy made more than $700 million in net operating income last year. That money doesn't stay in Nevada. It goes to Omaha."
Berkshire Hathaway is headquartered in Omaha, Nebraska. Every dollar of profit from NV Energy flows out of the state.
The Solar Destruction
Buffett's monopoly has real consequences beyond high rates. When Nevada regulators changed net metering rules in 2015-2016 to favor utility-owned solar over rooftop installations, the homeowner solar industry collapsed:
- SolarCity and other installers shut down Nevada operations
- Thousands of jobs lost
- Homeowners who invested in solar saw their economics destroyed
- The battle pitted Elon Musk against Warren Buffett
The new rules made it "uneconomical" for homeowners to install solar, effectively giving a monopoly on solar power to the utility itself.
What This Means for You
As long as NV Energy maintains its monopoly:
- You cannot choose a different electricity provider
- Rate increases face limited competition pressure
- Profits flow to out-of-state shareholders
- Rooftop solar remains economically challenging