NV Energy sues Tract over data center regulations

RENO, Nev. (KOLO) - NV Energy is suing data center development company Tract over alleged attempts to bypass the regulatory process related to data centers.

The company filed the lawsuit on Friday and accused Tract of asking a private arbitrator to grant the data center developer considerable amounts of energy.

NV Energy says that this would shift infrastructure and energy costs to Nevada families and businesses.

NV Energy also says that delegation of power cannot be done privately and must be done through the PUCN.

You can read the full text of the lawsuit here.

Tract released a statement on NV Energy’s lawsuit, saying:

“The complaint filed by NV Energy seriously misstates the issues, the facts, and the contracts NV Energy signed, and is laced with inflammatory rhetoric clearly intended to distract from the real issues. Tract has committed to paying our fair share for infrastructure and generation needs, and any claim otherwise is simply false.

This dispute concerns commitments that NV Energy negotiated, documented, and agreed to with Tract. The contracts signed by NV Energy commit this dispute to arbitration – a choice made by NV Energy – and NV Energy’s suggestion that the dispute should not be arbitrated is a complete contradiction of NV Energy’s own contracts. Rather than addressing those commitments in the manner dictated by their own contract language, NV Energy launched a public attack that appears designed to shape headlines rather than resolve a legal dispute.

The reality is simple: Tract has consistently operated transparently, honored our commitments, and made substantial investments in infrastructure improvements that support communities across northern Nevada. We have never asked or expected for our costs to be subsidized by others; to the contrary, we have spent over $50 million, and have committed to spend nearly $1 billion, to support NV Energy’s infrastructure. We have never sought or received any special treatment, and we remain committed to creating jobs and supporting economic growth in the state. We just want NV Energy to live up to the commitments it made to us.

We are confident that the facts support our position, and we look forward to presenting them in the appropriate forum. We fully intend to continue honoring our obligations and expect NV Energy to do the same.“