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In business downtown utilities Benefit corporations mix altruistic, profit motives Sierra Club won't oppose Buffett buying NV Energy By Joe Schoenmann staff writer Downtown Las Vegas, where young, idealistic business operators are moving into the Arts District and along East Fremont Street, seemed the perfect place to hold an informational powwow about benefit corporations. Few showed up, however, at the Learning Village, a Downtown Project facility, to hear details about Nevada's new state law enabling the creation of these corporate entities. A benefit corporation is a for-profit business that makes certain promises to make a positive societal impact while also making money. To ensure environmental or other societal goals are met, benefit corporations also have to be more transparent. No special tax breaks are accorded benefit corporations, said Reno attorney Luke Busby, who lobbied state lawmakers on behalf of the law. "The idea is, essentially, that you want to try to harness the power of By Cy Ryan staff writer The Sierra Club is dropping its opposition to the $5.6 billion sale of NV Energy to billionaire Warren Buffett. In May, Buffett's MidAmerican Energy Holdings Co. reached the deal to acquire Nevada's primary electric utility. It serves an estimated 2.4 million electric customers in Nevada. A stipulation was filed in November with the Nevada Public Utilities Commission in which MidAmerican has agreed to continue plans to shut down the coal-fire Reid Gardner Power Plant, accused of being a major source of carbon dioxide air pollution. In its earlier filing, the Sierra Club, which has 4,500 members in Nevada, said MidAmerican has the largest coal-generation fleet in the West and that the potential merger may pose risks to the public, including affecting the plans to retire Reid Gardner. The stipulation filed says MidAmerican is committed to retire the three business to deal with social issues," Busby said. "Governments and other parties haven't been able to do that and, if given the voice, consumers may choose to do the right thing." Nevada is one of 20 states that have passed benefit corporate laws, Busby said. Another 18 are expected to do so in the next round of legislative sessions. Benefit corporations do not receive additional tax breaks. But changing their mission to include the public good, Busby said, may appeal to consumers and investors who see beyond corporate fiduciary duties to maximize profits. About 400 businesses nationwide are designated this way. Fewer than 10 people attended the informational meeting. Busby said large and small businesses are adopting the model, which will become available in Nevada in January. units at Reid Gardner on or before Dec. 31, 2014, and has agreed to "thoroughly evaluate the retirement" of the coal-fired North Valmy Generating Station's Unit 1 in Northern Nevada by Dec. 31, 2021. An agreement was reached between MidAmerican, NV Energy, the state Bureau of Consumer Protection and the PUC that includes a $20 million credit to be applied to customers' bills when the deal is completed because the utility earned excessive returns. Gloria Smith, attorney for the Sierra Club, said the Sierra Club will not file any opposition to that plan. The stipulation says NV Energy in early 2014 will file plans to use more renewable energy facilities. In earlier prepared testimony, MidAmerican President William Fehrman said his company is committed to renewable energy. He said MidAmerican is now building three of the largest solar plants in the world. REAL ESTATE POWERHOUSE Newmark Grubb Knight Frank Las Vegas • Oneoftheworld'sleadingcommercialrealestate advisoryfirms • Morethan300officesonfivecontinents • Over11,000employees • Servespropertyneedsoftenants,owners, investorsanddevelopersworldwide Vegas Inc named "Best Overall Publication" in its category by the Nevada Press Association 2013. 3930 Howard Hughes Pkwy Suite 180 Las Vegas, NV 89169 702.733.7500 702.862.8242 www.newmarkkf.com | 16 DECEMBER 2013 20131216_VI11_F.indd 11 | 11 12/11/13 5:47:05 PM

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