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NEVADA VIEWS: Renewables can't do it all

A balanced energy portfolio is best for state

There has been much debate recently regarding Nevada's energy future. Electricity supply is a vital challenge for our growing state, and our response to this issue will help shape the economic future. Providing a reliable electricity supply is a complex process that involves environmental and reliability considerations as well as cost issues that impact everyone.

I believe that there is no single energy resource or solution that can do the job alone. Some have suggested that Nevada should rely exclusively on renewable energy sources such as geothermal, solar and wind power. Often missing from this dialogue is a realistic view of the challenges we face in developing renewable energy resources, along with the issues of reliability and cost.


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  • Our utilities -- Nevada Power Co. in Southern Nevada and Sierra Pacific Power Co. in the north -- are committed to furthering the development of renewable energy. Our customers in Northern Nevada have been using geothermal power since the mid-1980s. In fact, Nevada leads the nation in geothermal capacity per capita and was one of the first states to require utilities to invest in renewable energy.

    More recently, we have experienced strong progress in solar energy. Nevada Solar One, a 64-megawatt solar power plant near Boulder City and the largest of its kind built since the early 1990s, began producing electricity last year. And with the recent completion of a 14-megawatt solar plant at Nellis Air Force Base, Nevada is now the No.1 state in the nation for solar power on a per capita basis.

    Although our state's renewable resources are abundant -- and more renewable energy is on the way -- most renewable resources have inherent limits because they are not available 100 percent of the time. Our customers continue to need electricity when the sun isn't shining and the wind isn't blowing.

    We also have an obligation to keep electricity prices reasonable and predictable. While some forms of renewable energy are priced competitively, others are far more expensive. That expense is exacerbated by the need to provide backup supplies. In other words, when the wind is not blowing sufficiently to produce power, traditional power plants must be ready and available to keep the lights on and the air conditioners running in the summertime.

    Our company believes that renewable energy is an important component of a balanced portfolio of supply alternatives. It therefore plays a prominent role in our plans to serve Nevada's needs now and in the future. But if we bet Nevada's energy future solely on renewable resources, prices will increase and reliability will decrease.

    Our answer is a comprehensive, three-part strategy that balances conservation and energy efficiency, renewable energy and new fossil-fueled power plants.

    Over the next three years we expect to spend at least $135 million on conservation and energy efficiency. During 2007 alone, our programs saved almost 200 million kilowatt hours statewide and helped customers reduce their power bills, second only to California in reducing consumption per customer.

    Since the beginning of 2006, we have more than doubled our owned power generating capacity, building power plants in Nevada for Nevadans. And we're adding even more both here in Las Vegas as well as in Northern Nevada. When we complete our gas-fueled Tracy energy center near Reno this spring, Northern Nevada will virtually be energy self-sufficient.

    Our strategy also includes the coal-fueled Ely Energy Center being developed in White Pine County. The first phase of this project will generate 1,500 megawatts of electricity and help us meet and sustain Nevada's extraordinary growth.

    Because Nevada is the fastest growing state, extraordinary amounts of power are needed to keep up with demand. The new coal technology planned at Ely, which will meet or exceed air quality requirements, will go a long way toward meeting those demands in a clean and sustainable way.

    In fact, when we open, it will be the cleanest coal plant in the nation.

    It should not be overlooked that coal is our nation's most abundant fuel resource and it can stabilize electricity costs because wholesale prices for coal are more predictable than prices for natural gas. At present, we rely extensively on natural gas markets that are prone to price fluctuations. Coal will help balance our supply portfolio and mitigate this risk.

    The Ely project includes a 250-mile transmission line that will enable our two utilities to share power resources for the first time. And this line will provide a pathway to move new supplies of renewable energy between north and south, wherever they are most needed. Equally important is the fact that the Ely Energy Center will allow our company to close older, less-efficient coal plants in Southern Nevada. The ultimate result will be a significant decrease in greenhouse gas emissions.

    In summary, Sierra Pacific Resources is very serious about being good stewards of the environment and is dedicated to providing our customers with reliable electricity at reasonable and predictable prices. Over the past several months, Nevada's energy future has been debated loudly and furiously. I respectfully request that citizens examine all the facts before taking sides on these important issues.

    Michael Yackira is president and chief executive officer of Sierra Pacific Resources, the parent company of Nevada Power.

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    Don Evans wrote on February 09, 2008 10:08 AM: All,

    Nuclear has risks, I'll admit; however, they can be mitigated, if not eliminated entirely. Costs can be reduced with greater demand and limited deregulation.

    Through the entire debate I've been trying to state my view of the tenuous position we're in, as a nation. We are, by definition, running out of finite fuels to use. The time to definitively decide that we must shift to non-finite fuels is here NOW. We must, however, have some stable stopgap technology to use in the interim.

    There are some limiting factors for our decisions, however. Even if current scientific studies are incapable of showing definitively that burning fossil fuels is causing drastic changes to our environment; is anyone really willing to take the chance? Should we wait until we know for sure, only to find out that it may be too late to do anything about it? In short, coal should be used only if it can be PROVEN not to significantly alter the air we breathe.

    You'll notice that I've consistently asked for independent, verifiable proof of assertions, for any technology. The only assertion I don't need any more proof of is global warming as, when a gun is pointed in your direction you don't wait for proof that it's loaded.

    Any solution must be evaluated and debated; however, we should not dismiss any out of hand, even coal. In short, we should base our decisions on stopgap energy generation upon what we know; not what we think we know. Cost, efficiency, and RELATIVE safety for the environment are the criteria I'd like to see used.

    Unfortunately, tough choices must be made currently, and the available technological options for power generation are limited.

    Thank you for the debate.


    Don Evans wrote on February 08, 2008 01:24 PM: Mr. Rutledge,

    I use the nuclear comparison only as an example. I am in favor of any technology that can give us some degree of energy stability in the interim between our fossil fuel dependence an the inevitable need to use non-finite fuels.

    I have to agree with Mr. Henderson on this one; everything I've encountered implies that alternative fuels alone will not function at the necessary levels at the current level of technology. We can change this, but it will take time, economic incentives, and the deliberate shift of policy towards this end; hopefully prior to the full expense of finite fuels.

    Let me state that I am not adverse to coal plants, so long as it can be proved not to be detrimental to air quality. This is where I think the coal supporters may come into problems; I don't think the technology is near that level currently.

    I suggest nuclear as a POSSIBLE option only because I see it as the lesser of two evils; which would you rather see polluted, the air we breathe, or soil over a thousand feet below the surface?

    It's obvious we need the energy to be developed from somewhere, as I don't enjoy the thought of living in caves. Tough decisions need to be made, until alternative energy sources can be improved to the level needed for mass-use.

    As for the 100,000 year responsibility; lest we forget that radioactive materials are naturally occurring and last substantially longer in their natural state. And yet, no one thinks that this is where they are deposited after their use. It is only the inter-state transportation of these materials that I see as risky; not the on-site (or near-site) return of these materials to their original state.


    S. Henderson wrote on February 08, 2008 09:49 AM: Don Evans

    I don’t really have much experience with Nuclear power, so cannot comment on specifics. However one needs look no further than France to see it’s potential. France has 59 nuclear reactors which produce 75% of its electricity. In 1974 France decided after the first oil shock that for national security reasons it needed to pursue energy independence. France has few indigenous energy resources. As a result of that decision France has achieved near energy independence and one of the lowest costs in Europe for electricity.


    S. Henderson wrote on February 08, 2008 09:10 AM: Scot Rutledge wrote:

    “There are more jobs created through the construction and operation of renewable power generating facilities than coal plants, especially in White Pine County.”

    If you look at solar maps which give an idea of Watt/m^2/day you find that Ely is not an ideal location for solar farms, those are more than likely to be located further south. If you look at wind maps you come to a similar conclusion with respect to wind farms. Finally with respect to geothermal potential, Ely again is not the ideal location.

    If you consider your statement for a bit you imply that more people are required for construction and operation of renewable power plants that in turn implies that renewables at this time cannot compete effectively with traditional coal plants. Frankly this is the bottom line, if renewables could compete and could in fact result in lower costs to the Utility and it’s consumers we would not be having this discussion.


    S. Henderson wrote on February 08, 2008 09:04 AM: Scot Rutledge wrote:

    “These new coal plants will still emits millions of pounds of CO2 (EEC = 1.2 million ADDITIONAL cars on the road in terms of emissions) making these new plants hardly clean.”

    I find there to be a couple problems with this argument. First the idea that CO2 is a “pollutant” is bizarre despite recent rulings. Second there are around 2.5 million people in Nevada each “polluting” the atmosphere with between .5 and 1 kg of CO2/day due to natural respiration. That works out to be somewhere between 1 billion and 2 billion lbs/year. We humans are one heck of a source of CO2 “pollution”.

    “Older plants would be decommissioned anyways due to the standard operating life of these plants. If we replace older plants with increased DSM programs and renewables then we won't need new coal plants. “

    If the older plants cannot be replaced by new plants they will continue to operate. The utility has an obligation to provide to the customers, and will retrofit and maintain the older plants, they will not just shut them down. DSM at best is good for around 100 MW and requires cooperation of the consumers, and renewables as I have pointed out cannot be counted on to serve base load. These two factors (DSM and renewables) cannot replace the 1000’s of MW that are required to ensure our strong economy.


    S. Henderson wrote on February 08, 2008 08:23 AM: Scot Rutledge

    Currently 50% of the United States electricity is supplied by coal, and our energy needs are increasing not decreasing. If you think that that can be replaced in the near term by renewables you live in a dream world. Sources I find to be reliable suggest we have 250 years of coal assuming current consumption levels. Even if we accept your absurd 50 year estimate, that would be more than likely be enough to get us through a transition to other fuel sources considering the current rate of technological expansion.

    As I pointed out earlier, which you seem to ignore is thermal solar is not a likely candidate for serving base load due to a couple of facts. It is not available when the sun isn’t shining, and no amount of hand waving will change that. Second there is the regulation issue, as clouds pass over or wind and sand storms obscure the sun output is reduced, to maintain the generation/load balance generation will have to come from somewhere for reliable net operations.


    Scot Rutledge wrote on February 07, 2008 11:02 PM: Mr. Evans,

    Why I certainly appreciate the wonderful discourse over the past week I must take exception w/ the idea that nuclear might be a solution to our interim energy needs. For starters, it is the MOST EXPENSIVE form of electrical generation, with or without subsidies from the taxpayers footing the bill. From the mining of uranium (a finite resource), the electrical generation, and finally the waste disposal issue, there is nothing cheap nor environmentally sound about nuclear energy production. The Price Anderson act, which makes the clean up of ANY nuclear reactor accident a tax payer expense, is reason enough to not go with nuclear.

    Wall Street hasn't backed nuclear for decades.

    Also, if we were to attempt a nuclear renaissance, it would take decades to meet our energy demands based on the seven year standard for construction alone.

    In terms of the waste issue, we still haven't come up with an appropriate solution. Hardened On Site Storage, or HOSS, is the most reasonable solution for now, but you are still dealing with stockpiles of waste all over the country that are not only hazardous for the environment, but are a serious threat to our national security. Considering the tens of thousands of tons of highly radioactive waste we currently must contend with, how can we consciously continue to produce more?

    As we in Nevada are all to familiar with, a centralized storage facility for this waste presents tremendous challenges, from the ability to transport the waste safely across the country to building a suitable dump to store this 100,000 year responsibility.

    I offer up these thoughts because I believe we have a moral imperative to move forward with safe and economically sound energy policies in this great country of ours.


    Don Evans wrote on February 07, 2008 07:13 PM: Mr. Henderson,

    "Coal is abundantly available". Perhaps, but it is still a FINITE resource; as in, it will run out. Not now, not next year, but one day. The fact that it IS a finite resource, moreover, means that its cost, and the associated costs of generating power with it, will fluctuate; with the general price levels increasing steadily as we reach the point where the lights go out. This is by definition. One need only look at gas pump prices to see my point.

    We need stopgap technologies between fossil (FINITE) fuels and alternative, granted, but we should focus more heavily on alternative technology R & D, and we should carefully choose which technologies will be used in the interim. The balance between cost, efficiency, and environmental impact I outlined previously would be a good, general start for such an evaluation, I believe.

    To use the nuclear example again; unused nuclear power outputs are distributed DEEP underground and away from aquifers. Oddly, this is where they originate from and, most importantly, is an environment none of us inhabits or utilizes for survival. The fuel, more importantly, is also abundantly available in this country. The air we breathe would be the distribution point for so called "clean coal" plants. The technology for nuclear, moreover, is available now; whereas the "clean coal" technology is not.

    All of the other points you outlined, Sir, would similarly be met by the commissioning of virtually any other type of power generation plant. Again, why coal, necessarily?

    I'm not trying to be difficult. I simply need more convincing that a few radio commercials with some lame promises that imply that using the fuel source of the industrial age is some energy panacea. Numbers, please.


    Scot Rutledge wrote on February 07, 2008 07:08 PM: S Henderson:

    3. The technology while it doesn’t satisfy the extreme environmentalists is clean compared to older coal plants. Uses pulverized coal technologies with 750 MW supercritical steam turbine units. It will produce 90% less emissions than older coal power plants.

    These new coal plants will still emits millions of pounds of CO2 (EEC = 1.2 million ADDITIONAL cars on the road in terms of emissions) making these new plants hardly clean.

    4. It will allow for the decommissioning of older plants, thus reducing exposure to potential carbon caps or taxes that might be placed on those plants.

    Older plants would be decommissioned anyways due to the standard operating life of these plants. If we replace older plants with increased DSM programs and renewables then we won't need new coal plants.

    5. By allowing the decommissioning of older plants less pollutants will enter the environment. If the new plants aren’t built the older plants will continue to operate and pollute the environment something the environmentalists kind of ignore.

    See the above response to 4 & 5. In addition, advocates for a clean energy future do not ignore this point, we just have a different solution.

    6. It will provide the necessary reliable energy to allow our economy to continue to flourish.

    The new economies created through efficiency and renewable energy industries will not only keep our economy moving forward, they will provide new jobs and increased economic stability for communities.

    7. It will help the economy of Ely, and White Pine county. The folk there really need it.

    There are more jobs created through the construction and operation of renewable power generating facilities than coal plants, especially in White Pine County. They deserve to keep their air quality excellent and their children healthy while improving their economic situation.


    Scot Rutledge wrote on February 07, 2008 06:52 PM: S Henderson wrote:

    1. To provide a diverse fuel supply. Relying too much on one source like natural gas leaves the utility and ultimately the customers at the mercy of the natural gas market. Natural gas prices can fluctuate especially in the summer during hot weather during high demand.

    Both Archer Coal and Peabody are touting coal as a "growth market" -- claiming a 63% increase coal price in the next 3 years. This after seeing coal prices go up 30% in the past 5 years. As for "hot weather" price increase-- solar thermal is a great way to address that cost during peak.

    2. Coal is abundantly available.

    Again, the "abundance" is based on 50 years of easily accessible fuel. The remainder is going to cost much more to mine based on the geology of the seams and the increasing cost of fuel to mine the coal. This is not a stable fuel source.



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