Tuesday, Jan. 28, 2003 | 11:07 a.m.
Nevada Power Co. has asked the Public Utilities Commission of Nevada to approve long-term purchase agreements with three companies to provide power during summer peak-use periods.
The request, filed Friday, is part of an amendment to the Southern Nevada electric utility's resource plan. Under state law, contracts of more than three years are subject to review by state regulators.
"Long-term contracts help provide protection against volatility in the power markets and these agreements are part of our plan to ensure future price stability while providing safe and reliable service to our customers in Southern Nevada," Nevada Power President Pat Shalmy said in a statement announcing the company's filing with the PUC.
Consumer Advocate Tim Hay said he had not seen the filing nor had a chance to review Nevada Power's contracts. However, he said the Office of Consumer Protection would be closely examining pricing provisions to determine that they are in the best interest of the public.
Nevada Power doesn't have the power-generating capacity to supply enough electricity for its customers in the summer months when air conditioners are racing as temperatures climb above 100 degrees. Last summer, the utility's customers used 4,617 megawatts during peak usage. The company can only generate between 2,000 and 2,300 megawatts with its own power plants.
To provide enough electricity to meet its customers' needs, Nevada Power contracts for power with other utilities across the West. Purchased power is acquired by the company and the cost is recovered by the utility through rate requests reviewed annually by the PUC. Nevada Power has asked that the PUC act on its request by April 16.
Nevada Power's agreements are with Panda Gila River LP, Calpine Energy Services and Mirant Americas Energy Marketing LP.
The Panda Gila River LP agreement provides 200 megawatts of power to be delivered from Gila River Power Station in Gila Bend, Ariz., during the summer months of 2003, 2004 and 2005. Panda Gila River is a joint venture between TECO Power Services Corp. and Panda Energy International Inc. The 2,145-megawatt plant is under construction and will be brought on line in four phases begining in the spring.
Calpine Energy Services, a wholly-owned subsidiary of Calpine Corp., will deliver 100 megawatts between the hours of 9 a.m. and midnight and 50 megawatts from 1-8 a.m., seven days a week from June 1, 2003 through May 31, 2006. Energy will be delivered from Calpine's South Point Energy Center.
The Mirant deal involves three separate agreements totaling 325 megawatts. Each agreement identifies delivery dates ranging from May through April 2008. Most of the energy will be delivered from the company's Apex plant northwest of Las Vegas.
The price of the electricity is not being publicly disclosed and commissioners and intervenors are required to sign confidentiality agreements to review the proprietary information.
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