Nevada could lure Tesla with discounted electricity | AZstarnet.com

Much like apartments that advertise free utilities, development officials are holding out discounted electricity in hopes of landing the highly touted Tesla Motors Inc. battery factory that has five states competing.

Nevada recently passed a state law that could discount electricity 30 percent for the project. Meanwhile, the San Antonio utility has a rarely used “economic development” rate that discounts power as much as 50 percent, which has helped that region land Toyota Motor Corp.

Arizona electric companies can discount electricity to attract new development, but the new Nevada law offers a more streamlined process, giving their governor the ability to cut deals on electricity directly with companies looking to build in the state. As competition for the Tesla plant heats up, Nevada’s new law gives that state a powerful tool in its negotiations with the electric car maker.

Palo Alto, California-based Tesla said in February it is shopping in Nevada, Arizona, New Mexico and Texas for a site to build a factory the size of about 100 Walmart stores that would employ 6,500 people.

The announcement touched off a high-stakes bidding war among Southwestern states for what could be one of the largest manufacturing projects in the nation in recent memory. Tesla later said it would take a second look at its home state of California as well.

The states all have a variety of tax benefits and other incentives, including cash grants, to land major economic developments like the battery plant. But the price of the electricity Tesla will need to power its monstrous new facility promises to be a key factor in the company’s site selection.

via Nevada could lure Tesla with discounted electricity.