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Oct. 02, 2008
Copyright © Las Vegas Review-Journal

Utility OK'd to build one plant, buy another

By JOHN G. EDWARDS
REVIEW-JOURNAL

State regulators on Wednesday approved changes in NV Energy's integrated resource plan, allowing the company to buy one power plant and build another one.

The Public Utilities Commission voted 3-0 to allow NV Energy, which formerly was known as Nevada Power Co. and Sierra Pacific Power Co., to build a $682 million, 484-megawatt gas-fired plant at the Harry Allen Generating Station north of Las Vegas.

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    • The commission staff earlier suggested the utility buy an existing nearby gas-fired plant from LS Power for $545 million, but the commission directed NV Energy to build the more expensive, new power plant instead.

    Commissioner Rebecca Wagner dissented, partly because she didn't believe NV Energy provided enough information to justify factoring the cost of the Harry Allen plant into its rates before the power plant is completed.

    In addition, the commission approved NV Energy's proposal to purchase the 562-megawatt, gas-fired Bighorn Power Plant at Primm for $510 million.

    "These facilities will provide much-needed efficient energy production capability for Southern Nevada," Michael Yackira, chief executive of utility holding company Sierra Pacific Resources, said in a statement.

    The commission authorized NV Energy to spend up to $130 million on development of the delayed $5 billion Ely Energy Center, a 1,500-megawatt, coal-fired project in eastern Nevada.

    However, the commission ordered NV Energy to provide extensive reports next year on the Ely center. The commission rejected the utility's request to delay the review until the following year.

    In addition, the commission ordered NV Energy to report back on the feasibility of building a smaller, 500- to 700-megawatt coal-fired plant in Northern Nevada at Valmy Station.

    Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.



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    Ugly American wrote on October 02, 2008 09:25 PM: re Mistake

    Of course I'd rather see solar, geothermal & wind. I'm just saying natural gas is better than coal.

    Almost all Vegas natural gas comes from Wyoming.

    http://www.eia.doe.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/transcorr.html

    And the vast majority of the US gas imports come from Canada.

    http://tonto.eia.doe.gov/dnav/ng/ng_move_impc_s1_a.htm


    Mistake wrote on October 02, 2008 05:41 PM: LNG is bought mostly from overseas.

    This lowers the dollar value and increases globe warming


    Ugly American wrote on October 02, 2008 12:27 PM: BrightSource Energy is willing to build 3 400MW solar power plants around Vegas with their own money. That's enough to power half the entire valley. Only the government is blocking them.

    http://www.thespectrum.com/apps/pbcs.dll/article?AID=/20080822/DVTONLINE01/80822008/1053/DVTONLINE

    That said, natural gas (gas like your stove from Wyoming, not like your car from Iran) is much cleaner than the coal plants they keep pushing. Natural gas turbines don't waste water - coal does.


    TimeRanger wrote on October 02, 2008 11:35 AM: Just curious - Where are they going to get the massive amount of water needed to operate?


    Bad Decision wrote on October 02, 2008 10:19 AM: Has the commission hear about the cost of buy foreign gas.

    Has the commission hear about the empact of burning gas on globe warming.

    This is really dumb


    ths wrote on October 02, 2008 07:17 AM: $130 million would go a long way to build a combo thermal solar and wind plant in Ely and still give that local economy jobs.

    Talk about flushing money down the toilet. NV Energy could even buy solar thermal from a local manufacturer AUSRA. If enough demand is created perhaps they would expand their operations which would then create more jobs.