Guinn pushing power plants

Erin Neff and Launce Rake

Thursday, April 5, 2001 | 11:14 a.m.

They could be years from a reality, but two applications for new power plants have joined at least another dozen proposed to ease power woes in Southern Nevada and California.

The land-use applications to come before the Clark County Planning Commission today join other applications already before the state.

Gov. Kenny Guinn joined with representatives of four power companies this morning to announce their plans to build plants in Nevada.

This morning's press conference on the front steps of the Capitol was designed to highlight an agreement Guinn reached with the Las Vegas Valley Water District to streamline permits for the companies.

In a press release issued Wednesday afternoon, Guinn said the power plant construction was a result of streamlining processes outlined in his Nevada Energy Protection Plan.

"The streamlining of the permitting process for new plant construction is a crucial element, and I'm pleased to see that it is paying off quickly," Guinn said in the press release.

Federal, state and local officials have pledged to expedite approval of new power plants to ease a growing power shortage in the West. While power companies are scrambling to forestall power interruptions in California and Southern Nevada this summer, new power plants will take years for construction before they go online.

Sen. Dina Titus, D-Las Vegas, said she found this morning's announcement unusual because the plants involved have already gone through all the basic permitting that she had outlined in a streamlining bill that already passed.

"I think he's very worried about it being a campaign issue because power bills are going to go up, and the Democrats are way ahead on proposing solutions on this issue," Titus said.

One of the new plants joining the flood of proposals is a hydroelectric plant near the Red Rock National Conservation Area. Another is a smaller gas-fired plant about a mile north of Searchlight.

The proposed hydroelectric plant would take three years for construction, backers say. A consortium headed by St. George, Utah-based Creamer and Nobel Engineers hopes to build a 400-megawatt power station in the hills west of Las Vegas in Blue Diamond.

The proposed plant would sit on 188 acres about 4 miles west of Hualapai Way and 3 miles north of State Highway 160, also known as Blue Diamond Road.

According to the company's land use application, the plant would consist of two water reservoirs, at 4,800 feet and 3,300 feet.

Essentially, the hydroelelectric plant would be a giant battery, charging up when power is cheap and reselling it when power needs soar.

The plant would recycle the water from the lower to the upper reservoir, then allow the gravity-fed water to flow back to the lower reservoir, powering a generator at peak power-consumption periods.

The consortium, dubbed Blue Diamond Power Partners, has said that construction could begin by the fall and take three years to complete.

The proposal has gotten a recommendation for approval by the Clark County Planning Department staff, which found that "the proposed facility will serve a significant public need."

Not everyone supports the proposal. Jessica Hodge, a Las Vegas organizer with the Sierra Club, said environmentalists have fought similar proposals before. Their concern is that the plant and accompanying transmission lines will affect the environment in the area.

The Red Rock Citizens Advisory Council voted for the proposal recently, 5-0, but Evan Blythin, the council chairman, said the members had reservations about the appropriateness of the project.

"Yeah, we voted for it, but that didn't mean we all loved it," Blythin said. "My own preference would be to see that money spent in solar, geothermal or wind power. But then I don't have any say in that."

A natural-gas fired plant on the other side of the valley is also up for a vote by the Clark County Planning Commission tonight.

The Searchlight plant, planned by local developers VTN Nevada, would connect to existing gas and power facilities. County planning staff noted that the proposal does not meet the area's land use plan, but "will serve a significant public need and provide necessary infrastructure."

In Carson City, the new plants are among those that would eventually compete for a share of the lucrative wholesale-power market.

When Guinn unveiled his energy plan Feb. 22 he announced the Southern Nevada Water Authority had agreed to issue permits to four companies -- Duke Energy, Mirant Americas Inc., Reliant Energy and Pinnacle West -- in an effort to speed up construction by about a year.

"We don't want to be like other states, like California, who can't control their own destiny," Guinn said this morning.

Guinn said cooperation between the four companies and the water district helped streamline the water permitting process he first discussed six weeks ago.

Democrats viewed today's press conference as little more than a dog and pony show to trot out the companies for good news coverage.

Titus referred specifically to the quick passage of a proposal in the Democrat-controlled Assembly's Select Committee on Energy and through the full Assembly to halt the sale of power plants. Meanwhile, a similar proposal and the Assembly version are still stuck in the Republican-led Senate Commerce and Labor Committee.

Titus added Guinn "just wants to be the energy czar."

All four companies have previously presented information to the Senate Commerce and Labor Committee about their planned power plants northeast of Las Vegas.

On March 22 State Engineer Hugh Ricci announced he had approved two applications by the Las Vegas Valley Water District to pump 2,200-acre-feet of water in Hidden Valley.

The water district said it would be able to negotiate with the four companies to keep a specific amount of the power to stay in Southern Nevada in exchange for the water.

The two applications for pumping in Clark County had been on file since 1989.

The water district has signed letters of intent with Duke and Mirant to keep at least 25 percent of the power in Southern Nevada in exchange for the water.

"When you look at the megawatts, that means that a tremendous amount of power will stay here," Guinn said.

An estimated 550 megawatts would stay in Southern Nevada under the letters of intent.

Sierra Pacific Resources Chief Executive Officer Walter Higgins joined Guinn and representatives of Duke, Mirant, Reliant and Pinnacle at today's press conference. Clark County Commissioner Myrna Williams, president of the Las Vegas Valley Water District, was also expected to give remarks this morning.