Governors reach deal on electric lines

Kevin Rademacher

Monday, April 4, 2005 | 11:05 a.m.

The governors of four Western states, including Nevada, took the first step in developing a massive electricity transmission line that could be as long as 1,700 miles and cost $15 billion.

A memorandum of understanding was entered into this morning between the governors Nevada, California, Utah and Wyoming that will put in motion a plan to develop the Frontier Line transmission project.

Richard Burdette, energy adviser to Gov. Kenny Guinn, said the line is needed in order to allow Nevada utilities to keep up with demands for power that is being driven by rapid population growth.

He said that over the next five or six years, Nevada Power Co. of Las Vegas will have done all it can to meet load growth through measures such as conservation and management of existing resources.

"After that we are going to need some real muscle," Burdette said.

The Frontier Line would allow Nevada utilities the ability to tap new coal-fired power plants slated for construction in Montana and Wyoming in order to meet local demand.

The line also would connect Nevada Power's system with that of its Reno-based sister utility, Sierra Pacific Power Co. That would give Nevada Power access to geothermal resources in Northern Nevada while giving Northern Nevada access to solar power resources under development in the south.

Additionally, Burdette said allowing the two utilities to share resources will boost efficiency and reliability. That efficiency, he said, could save Nevada ratepayers "million of dollars."

Carolyn Barbash, executive in charge of transmission for Sierra Pacific Resources, parent company of Nevada Power and Sierra Pacific Power, said the concept of the project would be worthwhile for the utilities, but true benefits for Nevada are still unknown.

"It's pretty conceptual right now," she said. "That's why we were here, to make sure there is a benefit for Nevada."

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