Delay in construction of solar energy project draws criticism

Thursday, Feb. 17, 2005 | 10:57 a.m.

CARSON CITY -- Construction of a proposed solar energy plant to supply Southern Nevada is far behind schedule and the chairman of the Senate Committee on Commerce and Labor is highly critical.

Solargenix Energy signed a contract in 2003 to build the plant estimated to cost $150 million in Boulder City and have it operating in two years.

Donald A. Points, director of finance and strategic planning for the firm, said the problem has been getting financing. But he told the committee that a meeting is set for Friday to move forward in getting the financing for the project to generate 50 megawatts of electricity, enough to provide for 14,000 hotel rooms in Las Vegas.

The contract was signed with Sierra Pacific Resources Co., the parent company of Nevada Power Company.

Sen. Randolph Townsend, R-Reno, told Points, "You dropped the ball." He said the public has been patient in waiting for Solargenix Energy to perform.

"This is a bad day at Black Rock," said Townsend, chairman of the committee.

Nevada Power and its parent company, Sierra Pacific Power Co. of Reno must have 5 percent of its resources from solar energy by 2013 or it could face penalties.

Townsend questioned the commitment of Solargenix to the project. But Points said the firm has spent "tens of millions of dollars in the design." He added, "We have made a huge investment in this project," Points said.

"We have every intention of going forward," Points said.

The plant would take 18 months to two years to build. And Townsend suggested with the rising cost of building materials, the project may end up costing $20 million to $50 million more than estimated.

The company, based in Hilton Head Island, S.C., said construction will create 400 jobs and 25 people will be needed to operate the facility. A contractor has been selected and there is consideration for expanding the plant.

It needs final approval from the state Public Utilities Commission and construction could start in late spring.

Townsend said the penalties assessed to Nevada Power for not meeting the goal could be waived because of the problems with the solar energy provider.

"Let's get going so we can show the consumers something," Townsend told Points.