Concern spread across the region in March when it was announced that NV Energy will stop providing electricity generation service to Liberty Utilities — provider for the California side of the Lake Tahoe Basin — by 2027.

In reaction, Liberty is taking steps to find a new provider. Currently, the utility is seeking approval through the California Public Utility Commission (CPUC) to launch a formal search process. Assuming approval, a formal bidding process is anticipated to start this summer. Official results and a decision will likely be known in winter of 2026/27, and an agreement with a new supplier established in spring 2027.

Eric Schwarzrock, who has been Liberty Utilities president for about a year and a half now and a longtime South Lake Tahoe resident, has expressed a goal of transparency during the process across various outlets, town halls, and public forums.

That’s the plan for what has been described as an emergency. The discontinuance of power generation by NV Energy, as noted in a March letter to CPUC from Liberty, came as “a surprise.” In a 2022 Integrated Resource Plan, Liberty wrote that it assumed operating “through the end of 2025, and then under similar provisions for 2026-2030, under a follow-on NV Energy ESA (Energy Services Agreement).”

NV Energy, meanwhile, says this separation has been in the works all along.

“The decision not to extend the Liberty agreement long term is rooted in the original planning assumptions and contractual intent dating back to the 2009 asset sale,” shared Katie Nannini, community relations manager for NV Energy, in an email. “NV Energy sold the Liberty load with the clear understanding that it would not serve that load indefinitely.”

Review of public documents submitted to the CPUC over the past five years shows a nuanced situation between the two utility companies, including efforts Liberty previously took to separate from NV Energy. Liberty declined to comment beyond public statements that have already been made.

Now the situation, regardless of a shared history, is down to the wire.

An electrifying past

The separation of the two utilities is the final step for what was once one company. Liberty Utilities used to be owned by NV Energy — specifically Sierra Pacific Power Company, one of three subsidiaries that merged in 1999 and began doing business as NV Energy in 2008.

In 2011, at the conclusion of the 2009 asset sale, NV Energy, an investor-owned holding company incorporated under Nevada law, divested its California electric assets, comprising about 46,000 square miles in seven counties. After a multi-layered sale, the California customers ended up in the hands of CalPeco, aka Liberty Utilities, a subsidiary of Algonquin Power and Utilities Corp.

Along with the sale, NV Energy “also agreed to provide energy and generation capacity for a temporary transition period,” Nannini explained. “That period was originally set for five years and was later extended in 2015 and again in 2020 to give Liberty more time to implement its long term plans.”

And Liberty did try.

An attempt at separation occurred in 2018, when Liberty began negotiations with potential third-party suppliers “in order to seek more favorable terms and conditions and pursue its own accelerated renewable goals,” per an advice letter from Liberty to CPUC. The small, multi-jurisdictional utility sent an early termination notice to NV Energy in January 2018, to be effective May 1, 2019.

What stalled this effort? NV Energy itself. To move to a third-party supplier, Liberty needed to reserve space in NV Energy’s transmission system for a supplier to send electricity through. In July 2018, Liberty filed for 145 megawatts (MWs) of service. Space was reserved based on numbers provided by NV Energy. Four months later, using those numbers, Liberty began officially soliciting a new energy provider.

But the amount of availability in NV Energy’s transmission system turned out to be wrong.

“In January 2019,” a 2020 letter from Liberty to the CPUC stated, “NVE informed Liberty CalPeco of [a] … calculation error, which, after it was corrected, showed that 11 MW of Import Transmission Capacity was available for Liberty CalPeco, far less than previously published.”

Based on such constraints, by August 2019, no realistic alternatives emerged for Liberty. Negotiations with NV Energy were reopened and in August 2020, an ESA was created “for the sale and delivery of capacity and energy to Liberty” from December 2020 to December 2025.

At first, this new ESA was described by Liberty “as a bridge until Liberty CalPeco can secure utility-owned non-GHG emitting renewable generation through a competitive process, which will enable it to achieve its ambitious 100% renewables goal.”

Yet two years later, Liberty was anticipating remaining an NV Energy customer indefinitely since the Nevada utility company was providing the best possible outcome for its customers … until a new project goes online.

“Given Liberty’s understanding of NV Energy’s transmission planning activities,” the 2022 Integrated Resource Plan states, “the earliest time at which Liberty could potentially leave its current energy supply arrangement with NV Energy would be after Phase I of the Greenlink Initiative goes into service.”

The data center of it all

NV Energy’s Greenlink is a two-part project installing two kilovolt lines, or “energy highways,” across Nevada — one running for 250 miles, from Las Vegas to Yerington (Greenlink West), the other spanning 235 miles from Ely to Yerington (Greenlink North). These lines will allow the utility to increase import capacity for Northern Nevada. A December 2025 update from NV Energy stated, “The completion of Greenlink West and Greenlink North — along with the existing One Nevada Line — creates a triangle of transmission in the state … Greenlink Nevada results in modernization of the grid, improves reliability for customers, and positions NV Energy to meet Nevada’s energy needs.”

Greenlink West is anticipated to be completed May 2027 and will serve as the signal for Liberty’s official transition from NV Energy. This same project will help address the increasingly competitive market for power resources, especially with the increase of data centers in Washoe and Storey counties. Data centers are physical facilities housing and running large computer systems.

The U.S. Congress reported in January 2026: “U.S. data center annual energy use in 2023 (not accounting for cryptocurrency) was approximately 176 terawatt-hours (TWh), approximately 4.4% of U.S. annual electricity consumption that year, according to a report by Lawrence Berkeley National Laboratory … Some projections show that data center energy consumption could double or triple by 2028, accounting for up to 12% of U.S. electricity use.”

At the time of the Congressional report, there were no “legally binding energy standards” applying specifically to private sector data center operations.

However, at the end of March, Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) announced the Artificial Intelligence Data Center Moratorium Act, which would effectively put a pin in further data center development until more oversight can be established. As of press deadline, the bill lies with the Congressional Committee on Commerce, Science, and Transportation.

Currently, there are 29 such centers between Reno, Sparks, and the Tahoe Reno Industrial Center (TRI Center), the latter home to all but six of them. TRI Center’s first data center — Switch’s “Citadel Campus” — began construction in 2015 and officially opened in early 2017.

Then-Storey County Commissioner Marshall McBride said of the project, “With Switch’s $1 billion investment and 3-million-square-foot SUPERNAP data center, this region is solidifying its place in the technology innovation space. The country is looking at Nevada differently and now sees northern Nevada, Storey County, and TRI as the place for development projects of any size.”

NV Energy’s Nannini said, contrary to other media reports, the decision to stop providing power for Liberty was not driven by the rise of data centers, citing original contractual intent “well before data center load growth was a consideration … Data center growth did not change that position.”

Still a live wire

While NV Energy is pulling the plug on the actual power in the lines, it will still provide Liberty Utilities transmission services. Liberty (as well as the Truckee Donner Public Utility District, which powers Truckee) is part of NV Energy’s balancing authority, meaning NV Energy is responsible for ensuring the electric grid operates reliably 24/7 for users within its region. 

Where the power will come from is what Liberty leaders are working on figuring out. The utility customers are not physically connected to the rest of California, so pulling power from the state is problematic. “It would take a large transmission line from our service territory over the Sierras and then west further into California,” Liberty’s Schwarzrock said during a late-April Placer County town hall. “We looked at the nearest connection points. One of the ones that was closest that potentially would be one of the most reasonable connections was near El Dorado Hills. That would be a transmission line from El Dorado Hills toward South Lake Tahoe. [It would cost] hundreds of millions of dollars to build a transmission like line like that over the Sierras.

“We may seek to do something like that,” he continued. “But right now, that was not the best option. We actually have evaluated nine different [energy supply options] … to assemble our energy supply portfolio. Utilities often utilize a mix of strategies, including but not limited to, direct ownership, power purchase agreements, and various market options. [The transmission line option] was the least beneficial option because of the cost to build that transmission line.”

Liberty Utilities maintains two solar projects in Nevada that provide power, though not enough at present to power its customers entirely: There is the 50-MW Luning solar facility, which is forecasted to deliver 101,000 megawatt hours (MWh) in 2026, and the 10-MW Turquoise facility, anticipated to deliver 21,000 MWh. “For many days out of the year,” shared Liberty’s manager of regional communications, Kurt Althof, in an email. “When the sun is shining, our facilities provide 100% of the required supply.”

How ratepayers will be affected by the transition remains unknown, though Liberty has stated in an FAQ on the situation that it intends to keep affordability at the forefront of its discussions with potential providers.

Schwarzrock said there are numerous alternatives for how the company can approach the void, including wind farms, solar and battery farms, geothermal options, and full-service energy suppliers. As a winter-peaking region, Tahoe’s highest energy demand comes during the colder months — contrary to other utilities in the Western U.S., which use the most electricity during summer for air conditioning.

“It’s important to us that we’re going to make them compete for our business,” he said. “We’re looking forward for those entities to compete. We are a good partner and a good load for energy suppliers, so we expect a competitive process. Our priorities as we go through that [Request for Proposals] and make our transparent selections with the CPUC, are that we’re going to prioritize renewable and achieving our renewable goals within the state of California, and we are going to prioritize affordability.”

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Could Something Similar Happen in Truckee?

The Truckee Donner Public Utility District’s coverage area lies as an independent island within Liberty’s service. The only overlap for TDPUD and Liberty is that they both rely on transmission from NV Energy.

“We pay our fair share to NV Energy for the transmission services they give us,” said Steven Poncelet, public information and strategic affairs director for the PUD. “That’s all done at the federal level through the Federal Energy Regulatory Commission.”

Beyond that commonality, TDPUD has a different makeup entirely as an electricity provider.

Rather than the investor-owned utility model, the PUD is a municipal not-for-profit agency that provides both water and electric services for the Truckee community. As one of 18 special districts in the Truckee/North Tahoe region, it is overseen by an elected board of directors.

TDPUD’s power primarily comes from the Utah Associated Municipal Power System (UAMPS), which consists of 49 public power utilities across many western states. “That’s who builds and owns and operates all of our power plants,” Poncelet said. “So, when we say that our largest resource is Horse Butte Wind in Idaho, that’s a project that we own a percentage of, and that is run, owned, and operated by UAMPS on behalf of the members. They have the transmission, and then they send the power to us eventually through NV energy transmission for delivery to our customers.”

Could NV Energy similarly end its transmissions contracts with TDPUD as it has done with Liberty’s power generation contract? Poncelet said that’s not a concern. “The [transmissions] contracts that we have are approved by the Federal Energy Regulatory Commission … and across the industry, every utility across the country goes to FERC for these transmission contracts. Many lawyers have asked that question, so I’m pretty confident they couldn’t just decide not to service.”