Nevada Power gets OK on plant deal

Kevin Rademacher

Tuesday, Sept. 13, 2005 | 10:58 a.m.

The staff of the state Public Utilities Commission, Nevada Power Co. of Las Vegas and the state Bureau of Consumer Protection have reached a stipulated agreement on the electric utility's proposed $210 million purchase of a Southern Nevada power plant.

The three-member Public Utilities Commission is expected to vote on the agreement at a meeting Sept. 21.

In June, Nevada Power said is would buy a 75 percent stake in the natural gas-fired Silverhawk Power Plant from GenWest LLC, a subsidiary of Phoenix-based Pinnacle West Capital Corp.

Silverhawk is a 570-megawatt power plant located at the Apex Industrial Park, about 20 miles north of Las Vegas. The remaining 25 percent of the plant is owned by the Southern Nevada Water Authority.

One megawatt is estimated to be enough power to serve about 750 homes.

As part of the stipulation, Nevada Power also would be required to conduct additional studies into the use of renewable energy resources, particularly wind power. The agreement also would include the retirement of three old power plant units at the utility's Clark Generating Station.

Parties to the case have said that the newer Silverhawk plant, which went into service in May 2004, could save customers money through the more efficient use of natural gas, which has spiked in price in recent months.