Adelson and Buffett face off against electricity in Nevada

(Reuters) – Casino tycoon Sheldon Adelson and investor Warren Buffett are expected to face the desert off electricity next week as the interests of the two billionaires clash in Nevada's election campaign.

In the November 6 election, the problem is the cost and control of the electricity produced by the neon lights illuminating the Las Vegas Strip to the state's gold mines.

A measure backed by Republican donor Adelson, who is also president of Las Vegas Sands Corp, would force state legislators to break control of much of the state's electricity actually held by a Buffett unit, Berkshire Hathaway Inc., NV Energy. This would allow customers to choose their own electricity supplier by 2023.

Buffett supported liberal causes and supported Democratic presidential candidate Hillary Clinton in 2016.

Unlike previous Western duels, both Nevada teams come with money. The fight against energy announces it as one of the most expensive periods of an election season during which Democrats are trying to take control of at least one US Congressional House of Republicans.

Until now, Nevada's conflicting interests have brought in more than $ 96 million in the battle for electricity, according to documents filed with the state government. NV Energy spent almost 4 times more money than Sands.

Casinos like Venetian de Sands, whose lights sparkle in Las Vegas, are major energy consumers in the state. Caesars Entertainment Corp., Wynn Resorts Ltd and MGM Resorts International had previously decided to pay tens of millions of dollars in exit fees to abandon their energy supplier. Proponents say that choosing their utility can reduce costs. A spokeswoman for Sands did not respond to a request for comment.

Voters approved the public service proposal in 2016 and must do it a second time for the Nevada Constitution to reflect the change.

A spokeswoman for NV Energy said in a statement that the company is backing its efforts to thwart the "risky and expensive" measure, known as Question 3, "to make sure all Nevadans have the facts "On the potential of" dismantling an electrical system already providing Low costs, increased clean power generation, excellent customer service and unparalleled reliability in the industry. "

The move by Nevada puts more pressure on an industry undermined by the growth of alternative energy sources, some of which make it easier for consumers to produce their own electricity.

US electric utilities have yielded 1.3% return to investors, including dividends, over the past year, nearly half of the revenue generated by utilities.

Since it was acquired by Berkshire in 2013, NV Energy has invested in solar energy, in addition to coal and natural gas. It entered into an agreement in 2016 with Elon Musk's SolarCity Corp, which allowed thousands of Nevada rooftop solar customers to take advantage of richer subsidies than the new pricing guidelines supported by NV Energy.