Thursday, Sept. 30, 2004 | 11:17 a.m.
The state Public Utilities Commission on Wednesday unanimously approved draft regulations for the Temporary Renewable Energy Development (TRED) program.
The program was created in response to complaints from renewable energy developers. Those executives said that because of the shaky financial condition of Nevada Power Co. in Las Vegas and Sierra Pacific Power Co. in Reno -- the companies which will ultimately be under contract to buy the power -- financiers had been hesitant to fund the deals.
Under the program, all payments from ratepayers earmarked for renewable energy will go directly into a trust and then be paid to developers.
"This program addresses one of the key barriers, which is ... financing," said PUC Commissioner Carl Linvill, who presided over hearings in the case.
PUC Chairman Don Soderberg hailed the progressive nature of the TRED program, which was supported by Gov. Kenny Guinn.
"This program is rather unique," said Soderberg. "I was impressed with how creative it is at attacking what was once thought to be an unsolvable problem."
The regulations will 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.
In hearings earlier this month, regulators, renewable developers, financiers and consumer advocates agreed on the language for regulations. The new rules must still receive final approval from the Legislative Commission.
"It's one more step," said Tim Carlson, president of Carlson & Associates, which is planning a wind-power generating facility near Ely. His project has been stalled because of funding issues.
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