Vol. 4,  No. 2          November 15, 2006

Nevada's Online State News Journal

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Ely Power Plant Gets OK --

Transmission Line Too

PUC Divided Over Renewable

Energy Bonuses/Tax Breaks

Sierra Pacific Resources, home to Nevada Power Company in southern Nevada and Sierra Pacific Power Company in the north was given the go-ahead to begin work on a $3.7 billion coal fired power plant in Ely.  A transmission line that will connect the north and south power outlets for the first time is part of the project.  The only point of contention was the possibility of the power company receiving bonuses and tax incentives if there are renewable energy systems included in the project.  Nevada state law already provides that the companies must have a certain percentage of renewable energy on line, and to add tax breaks to what is already law is questionable according to Erik Witkoski, the state's consumer protection advocate.

PUC Chairman Don Soderberg said, "This order supports moving forward with renewable energy, expanded capacity, and fuel diversity."  By fuel diversity Soderberg was referring to the use of coal generation rather than natural gas.  "For the first time, we Nevadans are really hedging our bets against future shortages and unscrupulous wholesale markets."  Sierra Pacific Resources has been hit hard by natural gas price increases and was hit hard in the energy crunch of 2000.

The problem that Witkoski sees in the incentive program is that they last virtually forever rather than for just a set period.  Building the Ely Energy Center as the project is called is an asset to Nevada's major energy corporation, and incentives are not needed, he said.  There are three Public Utilities Commissioners and Jo Ann Kelly was the commissioner that voted against the incentives.  Commissioners Rebecca Wagner and Soderberg voted for the incentives.

When completed the Ely Energy Center is expected to develop some 1500 megawatts of electricity that can be directed to the north or the south.  The new transmission line will connect the two energy-distributing entities for the first time.  For many years the two companies were separate companies and merged into Sierra Pacific Resources several years ago.  The transmission line will allow the companies to share excess energy.

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