Wednesday, Sept. 22, 2004 | 11:11 a.m.
State utility regulators, power company executives and renewable energy developers on Tuesday took another step toward easing Nevada's dependence on fossil fuels for power generation.
In a hearing the parties agreed on language for regulations implementing the Temporary Renewable Energy Development Program. The regulations could receive final approval from the state Public Utilities Commission at their next regular meeting, scheduled for Sept. 29. The regulations also must be accepted by the Legislative Counsel Bureau.
The TRED Program, which was announced by Gov. Kenny Guinn in July, came after months of failed attempts to get new renewable energy power plants built in Nevada.
The program was designed around a trust that will give renewable developers additional guarantees that they will receive a return on their investments. Developers had complained that because of the shaky financial condition of Nevada Power Co. in Las Vegas and Sierra Pacific Power Co. in Reno, financiers had been hesitant to fund the deals.
Under the program, all payments from ratepayers earmarked for renewable energy will go directly into the trust and then be paid to developers.
The proposed regulations would give the PUC the authority to order a utility to participate in the TRED program in order to complete renewable energy power projects, such as wind or solar power. In making its determination of whether to require a utility to participate, the commission will be able to consider the utility's creditworthiness, whether the utility's credit has impeded the renewable project, whether the TRED program will expedite the process and the public interest.
Tim Carlson is president of Carlson & Associates, which is planning a wind-power generating facility near Ely. His project is one of those that had been stalled by financing glitches. The new regulation sets the stage for additional development, Carlson said.
"I don't think we're going to see an immediate flood of project move forward," he said. "But I do see an influx of investment financing in the state of Nevada. What we will see is a lot more companies taking a serious look at Nevada. A lot more positive things moving forward."
Under a 2001 law handed down by the Nevada Legislature, an increasing percentage of the state's electric utilities' portfolios must come from renewable sources. Lack of financing and the resulting lack of new resources have prevented the utilities from meeting those standards in the initial years of the mandate.
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