Proposal could aid renewable power production

Kevin Rademacher

Friday, June 17, 2005 | 10:48 a.m.

A new amendment to a long-stalled federal energy bill could bolster Nevada's efforts to increase the use of renewable energy.

Nevada's U.S. Sens. Harry Reid and John Ensign said Thursday that they supported an amendment to the federal legislation that would require large electric companies to obtain 10 percent of their total energy portfolio from renewable sources by 2020.

That mandate would be less stringent than Nevada's renewable energy law passed in 2001. That state law requires that Nevada Power Co. of Las Vegas and Sierra Pacific Power Co. of Reno get 15 percent of their power from renewable sources -- such as solar, wind or geothermal sources -- by 2013.

The hope, utility executives said, is that more renewable energy activity nationwide could ultimately create a critical mass among renewable generation manufacturers, ultimately driving down prices.

"Overall, it's about giving the industry a shot in the arm," said Tessa Haffen, a spokeswoman for Reid. "It's a way of helping them compete with traditional oil and gas generation companies."

Tim Carlson, who is developing a wind farm near Ely, said the amendment could provide that needed boost.

"Anytime you can increase activity in an industry, you can have the effect of reducing costs," he said. "The more people consider renewables, the lower the cost is going to be."

Roberto Denis, vice president for energy supply at Nevada Power Co., agreed.

"It would provide some certainty with regard to federal policy," he said. "With that, more renewable ventures would be coming."

He said that certainty would benefit both developers of renwable power plants and manufactuers of the equipment needed to power them once they "can count on a long-term market."

No one, however, is sure when or if the federal energy bill will become law. The debate has been raging in Congress for years. The current bill is expected to go to the Senate floor next week, and it must still pass a conference committee to work out differences with a House bill.

Carlson said the recent spike in natural gas, electricity and gasoline prices could set the stage for progress on the energy bill as public pressure builds for answers to questions about the nation's dependance on fossil fuels.

"Absolutely the time is right," he said. "The economy is what drives most actions by Congress. People are getting nervous, concerned and upset about what is happening."

Again, Denis agreed, adding that U.S. policymakers must take the first step.

"We have to, at some point, quit debating and do something," he said. "We just need to get started on a policy. If there needs to be some mid-stream adjustment (later) so be it."

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