Utilities try to restart renewable program
May 13--By John G. Edwards, Las Vegas Review-Journal Knight Ridder/Tribune Business News
The state's two large investor-owned utilities are trying to get their renewable energy program back on track after failing to comply with the state law minimums for use of so-called green power in the last two years.
The power plants would be scheduled to start generating electricity by late
2006 and 2007. If they are completed on time, "it gets us awfully darn
close" to compliance with the Nevada renewable energy law, Balzar said.
Under the renewable energy law, Nevada Power was required to obtain 5 percent
of its power from renewable sources for 2003 and 2004.
In addition, the law requires the utilities to obtain 5 percent of their
renewable power minimum from solar power, and both Nevada Power and Sierra Power
failed to satisfy that requirement last year.
The utilities missed the targets for both years, in part because several
developers broke contracts to build green power plants and others were delayed.
The developers said they had difficulty getting financing for the projects
because their only customers, the two utilities, have junk bond ratings. The
Public Utilities Commission adopted a program that is designed to protect
power-plant developers against a possible bankruptcy filing by the utilities.
Most observers, however, do not expect the companies to need bankruptcy
protection.
While the Public Utilities Commission decided not to fine the utilities for
noncompliance in 2003, it has yet to decide whether it will fine the utilities
for noncompliance in 2004.
Richard Burdette, the late energy adviser to Gov. Kenny Guinn, was advocating
passage of Senate Bill 188, which would allow the utilities to substitute energy
conservation programs for part of the green power requirements, in part because
he believed the commission would be under increasing pressure to penalize the
company for noncompliance with the green power law.
The bill comes up for consideration by the Assembly Commerce and Labor
Committee on Monday.
"We think it's a good bill," Balzar said.
The utilities did not issue a request for proposals on green power plants
last year, Balzar said, but he said that stemmed more from a timing issue of
seeking projects as the percentage of green power increases every two years.
Also, the utilities did not want to consider new projects that might interfere
with efforts of Solargenix to develop a delayed 50-megawatt solar thermal plant
and with Ely Wind's proposal to build a wind farm near Ely. Developers continue
to pursue those projects, he said.
"It's our corporate policy to meet the state law requirements,"
Balzar said.
He is optimistic that the utilities will have more success getting renewable
power from independent power producers in the future for three reasons. Nevada
Power and Sierra Pacific Power are financially stronger than two years ago,
making it easier for developers to obtain financing for projects. Renewable
technologies are improving, and Nevada officials are learning more about sites
that are attractive for wind, geothermal and solar power plants, Balzar said.
In addition to seeking renewable power from independent companies, the
utilities are developing some solar plants of their own.
The company has been installing a 13-kilowatt, $130,000 solar photo voltaic
system at Nevada Power headquarters. In addition, it intends to spend $800,000
building a 100-kilowatt solar power plant at the Clark Station power plant by
U.S. Highway 95. Balzar said he expects the Clark Station solar panels to be
generating electricity by January.
The company wants the solar plant to be visible from the highway.
"We think it's important (for the public) to understand that the state
and Nevada Power are thinking about alternatives to fossil fuels," such as
natural gas and coal, he said.
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