Power contract finalized

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Kevin Rademacher

Wednesday, Dec. 24, 2003 | 11:27 a.m.

The Black Hills Corp. announced Tuesday that it has finalized the details of a long-term contract to provide power from its Las Vegas Cogeneration II plant to Nevada Power Co.

The South Dakota-based company will provide power from the 224 megawatt plant for the next 10 years. Nevada Power will be responsible for supplying natural gas to fuel the North Las Vegas plant.

The deal must still receive regulatory approval from the Nevada Public Utilities Commission. Black Hills said that approval is expected to come in the next 90 days. Delivery of the power will begin as soon as the PUC approves the deal, Black Hills officials said.

Financial terms of the deal were not disclosed.

In August, Black Hills terminated a 15-year deal with Allegheny Energy Supply Co., which had been contracted to market energy produced by the plant. Allegheny, which said it wanted out of the Western energy market, paid $114 million to terminate the deal.