Feds give go-ahead to build power plant

Friday, Oct. 5, 2001 | 9:52 a.m.

The Bureau of Land Management has given a green light to construction of a controversial power plant in the hills west of the Las Vegas Valley.

Environmentalists had argued that federal legislation passed in 1994 and 1999 left a narrow, expired time for Blue Diamond Power Partners to build a "peaking power" hydroelectric plant adjacent to land in the Red Rock National Conservation area.

Mark Morse, BLM field manager for Las Vegas, wrote Wednesday that his agency "believes Blue Diamond timely obtained all necessary licenses as required by the legislation."

The plant, on the drawing board for a decade, would work as a sort of giant battery. During low electric use periods of the day, the plant would buy low-cost power to pump water to an upper reservoir. When demand soars during hot summer days in Southern Nevada, the plant would allow water to run to a downhill reservoir, driving turbines to generate electricity to sell back on the grid.

The partnership has estimated that the plant could provide power for about 200,000 homes during peak use hours, usually during the summer months when air conditioners are running.

The company's license to build the plant from the Federal Energy Regulatory Commission expired in July. Environmentalists had argued that because of the license expiration, the land granted the company to build the plant should revert to the conservation area.

The company is a partnership of St. George, Utah-based Creamer and Noble engineering and multinational Mitsubishi Corp.

For a FERC license extension, Congress must act. Sen. Harry Reid, D-Nev., had proposed legislation extending the construction start date for the plant, but, citing environmental concerns, put the bill on hold.

Rex Wells, BLM assistant field manager, said the FERC's approval is still needed for construction.

"Having a valid FERC license is a condition of our right-of-way," Wells said. "Without that, they cannot construct the project."

Both the company and environmentalists will turn their efforts to Congress.

"That's the next focus," partnership spokeswoman Kay Scherer said.

She said the BLM letter would ease the environmental concerns expressed by Reid and others.

Steve Creamer, an engineer and principal with the project, said the environmental concerns are misplaced. The project wouldn't be visible from the heart of the Red Rock visitors' area or from the Las Vegas Valley, he said.

He said the project "continues to move rapidly toward construction."

But Marcia Forkos, chairwoman of the local arm of the Sierra Club, said the group will continue to oppose the project and will take its arguments to Nevada's congressional delegation.

"Whether we win or not, it is an issue that needs to be addressed," she said. "The residents of Blue Diamond do not want this."