Vol. 3, No. 21
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September 1, 2006
Nevada's Online State News Journal
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Major Power Squabble Before Public Utilities Commission
Sierra Pacific Hearing On Ely Coal Plant Brings Complaints From Many Others
Two large power-generating companies want to build massive coal fired plants in Ely, White Pine County, and testimony of one is being denied. If an appeal by LS Power of New Jersey is denied by PUC Chairman Don Soderberg, the entire matter might end up in court. Sierra Pacific Resources wants to build a 1,500 megawatt plant in White Pine County along with a major transmission line that would connect its two power distribution companies for the first time. Sierra Pacific Power Company serves northern and rural Nevada and Nevada Power Company serves southern Nevada. LS Power has been allowed to testify on hearings in which the transmission line is discussed, but not in the hearings on the coal fired plant itself.
LS Power has plans to build an equally large coal fired plant in White Pine County and feels it has a right to be heard in PUC hearings. In previous news articles, LS Power has implied that Sierra Pacific Resources actually stole LS Power plans for their plant. LS Power is not alone in not being able to testify before the commission. Soderberg also has denied a group of environmental organizations the right to testify. Soderberg's justification for denying the group's testimony is the fact Nevada has a Bureau of Consumer Protection that would see to it that citizen protection is upheld. His decision may end up being mitigated by court action.
Interestingly, major casino associations and the Southern Nevada Water Authority (SNWA) were allowed to testify. Soderberg did not say why he allowed the Nevada Resort Association, MGM Mirage, and SNWA the right to testify and not LS Power or environmental groups.
In other PUC news, the commission will approve the settlement between SPPCo and Ormat Technologies and their ORNI 14 geothermal operation south of Reno. The long-term power purchase agreement for the Galena No. 3 Geothermal Power Project is another in a long line of Ormat successes in Nevada. The purchase agreement is for the sale and purchase of approximately 171,00 MWh annually of geothermal energy and approximately 195 million non-solar portfolio energy credits for a 20-year term.
Nevada power distribution companies are mandated to create a certain percentage of their power from alternative sources such as geothermal, solar, and wind. Sierra Pacific Resources with SPPCo in the north and Nevada Power in the south has been well behind schedule. These credits can be applied towards the fulfillment of Sierra Pacific's Renewable Portfolio Standard, which requires that 20 percent of the company's sales be generated by renewable energy by 2015.
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